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

| For      the quarterly period ended: | September 30,      2008 |
|--------------------------------------|------------------------------|

|        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 small business issuer as specified in its  charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |
| Nevada                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 88-0392994 |
| (State      or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (I.R.S.      Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4000      West Ali Baba Lane, Suite D, Las Vegas, Nevada 89118                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (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 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:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 14,019,590 shares      of Common Stock Series A, $.001 par value, as of September 30,      2008 |

----

Table of Contents

|                                   | LAS      VEGAS GAMING, INC. FORM      10-Q TABLE OF CONTENTS                           |     Page |
|----------------------------------------|--------------------------------------------------------------------------------------------------|------------------------------|
| PART I – FINANCIAL INFORMATION   | 2                                                                                           |
| Item      1.                           | Financial Statements                                                                             | 2                       |
|                                   | Consolidated Balance Sheets                                                                      | 2                       |
|                                   | Consolidated Statements of Operations                                                            | 3                       |
|                                   | Consolidated Statements of Operations                                                            | 4                       |
|                                   | Consolidated Statements of Stockholders’      Equity                                       | 5                       |
|                                   | Consolidated Statements of Cash Flow                                                             | 6                       |
|                                   | Notes to Unaudited Consolidated Financial      Statements                                        | 8                       |
| Item      2.                           | Management’s Discussion and Analysis of Financial Condition and      Results of Operations | 18                      |
| Item      3.                           | Quantitative and Qualitative Disclosures About Market      Risk                                  | 25                      |
| Item      4T.                          | Controls and Procedures                                                                          | 25                      |
| PART II –      OTHER INFORMATION | 27                                                                                          |
| Item      1.                           | Legal Proceedings                                                                                | 27                      |
| Item      1A.                          | Risk Factors                                                                                     | 27                      |
| Item      2.                           | Unregistered Sales of Equity Securities                                                          | 27                      |
| Item      3.                           | Defaults Upon Senior Securities                                                                  | 27                      |
| Item      4.                           | Submission of Matters to a Vote of Security      Holders                                         | 28                      |
| Item      5.                           | Other Information                                                                                | 28                      |
| Item      6.                           | Exhibits                                                                                         | 28                      |

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Table of Contents

PART I 

Item 1.  

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                          |   | December      31, 2007 |        |   | September      30, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-------------|--------|-------------------------|--------|
| ASSETS                                                                                                                                        |   |                   |        |   | (unaudited)             |   |
| Current      assets                                                                                                                           |   |                   |        |   |                    |   |
| Cash                                                                                                                                          |   | $                      | 489,262     |   |                    | $      | 351,444 |   |
| Investment      in marketable securities                                                                                                      |   |                   | 87,881      |   |                    |   | 45,438 |   |
| Accounts      receivable, net of allowance of $708 and $5,245                                                                                 |   |                   | 567,186     |   |                    |   | 538,397 |   |
| Inventories                                                                                                                                   |   |                   | 1,161,707   |   |                    |   | 1,115,003 |   |
| Prepaid      expenses, deposits and other                                                                                                     |   |                   | 149,596     |   |                    |   | 563,296 |   |
| Jackpot      reserve deposits                                                                                                                 |   |                   | 276,012     |   |                    |   | 1,574,652 |   |
|                                                                                                                                          |   |                   | 2,731,644   |   |                    |   | 4,188,230 |   |
|                                                                                                                                          |   |                   |        |   |                    |   |   |   |
| Equipment      and software, net of accumulated depreciation of $1,565,560 and      $1,527,309                                                |   |                   | 1,033,349   |   |                    |   | 904,839 |   |
|                                                                                                                                          |   |                   |        |   |                    |   |   |   |
| Other      assets                                                                                                                             |   |                   |        |   |                    |   |   |   |
| Goodwill                                                                                                                                      |   |                   | 955,277     |   |                    |   | 955,277 |   |
| Trademarks,      copyrights, patents and other identifiable intangibles, net of accumulated      amortization of $1,098,867 and $1,460,890    |   |                   | 1,317,369   |   |                    |   | 955,346 |   |
| Other                                                                                                                                         |   |                   | 884,350     |   |                    |   | 115,776 |   |
|                                                                                                                                          |   | $                      | 6,921,989   |   |                    | $      | 7,119,468 |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                     |   |                   |        |   |                    |   |   |   |
| Current      liabilities                                                                                                                      |   |                   |        |   |                    |   |   |   |
| Advances      from stockholders                                                                                                               |   |                   |        |   |                    | $      | 2,100,000 |   |
| Accounts      payable and accrued expenses                                                                                                    |   | $                      | 1,453,525   |   |                    |   | 2,455,296 |   |
| Current      portion of long-term debt                                                                                                        |   |                   | 787,550     |   |                    |   | 632,842 |   |
| Progressive      jackpot liability                                                                                                            |   |                   | 375,508     |   |                    |   | 936,426 |   |
|                                                                                                                                          |   |                   | 2,616,583   |   |                    |   | 6,124,564 |   |
|                                                                                                                                          |   |                   |        |   |                    |   |   |   |
| Long-term      debt                                                                                                                           |   |                   | 5,940,925   |   |                    |   | 7,088,956 |   |
| Conditionally      redeemable equity                                                                                                          |   |                   |        |   |                    |   |   |   |
| Series      B convertible preferred stock, $.001 par, 130,350 and 52,000 shares      issued  and outstanding                        |   |                   | 651,750     |   |                    |   | 260,000 |   |
|                                                                                                                                          |   |                   |        |   |                    |   |   |   |
| Stockholders'      equity                                                                                                                     |   |                   |        |   |                    |   |   |   |
| Convertible      preferred stock, $.001 par, 10,000,000 shares authorized:                                                                    |   |                   |        |   |                    |   |   |   |
|   Series      A: 0 shares issued and outstanding                                                                                    |   |                   | -           |   |                    |   | - |   |
|   Series      C: 35,000 and 0 shares issued and outstanding                                                                         |   |                   | 35          |   |                    |   | - |   |
|   Series      D: 125,000 and 0 shares issued and outstanding                                                                        |   |                   | 125         |   |                    |   | - |   |
|   Series      E:  743,800 and 810,800 shares issued and      outstanding                                                  |   |                   | 744         |   |                    |   | 811 |   |
|   Series      F: 200,000 shares issued and outstanding                                                                              |   |                   | -           |   |                    |   | 200 |   |
|   Series      G: 150,000 shares issued and outstanding                                                                              |   |                   | -           |   |                    |   | 150 |   |
|   Series      H: 98,500 shares issued and outstanding                                                                               |   |                   | -           |   |                    |   | 99 |   |
| Common      stock (including Series A): $.001 par, 90,000,000 shares authorized,      12,562,653 and 14,019,590 shares issued and outstanding |   |                   | 12,563      |   |                    |   | 14,020 |   |
| Additional      paid-in capital                                                                                                               |   |                   | 26,497,097  |   |                    |   | 30,393,359 |   |
| Less      due from officers and stockholders                                                                                                  |   |                   | (235,414    | )      |                    |   | (182,826 | ) |
| Deficit                                                                                                                                       |   |                   | (28,562,419 | )      |                    |   | (36,579,865 | ) |
|                                                                                                                                          |   |                   | (2,287,269  | )      |                    |   | (6,354,052 | ) |
|                                                                                                                                          |   | $                      | 6,921,989   |   |                    | $      | 7,119,468 |   |
| The      accompanying notes are an integral part of these consolidated financial      statements.                                             |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                                              |   | 2007   |       |   | 2008   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Revenues                                                                                          |   |   |       |   |   |   |
|     Casino      games                                                         |   | $      | 439,954    |   |   | $      | 709,195 |   |
|     Product      sales                                                        |   |   | 633,285    |   |   |   | 254,369 |   |
|     Other                                                                     |   |   | 320,246    |   |   |   | 238,393 |   |
|                                                                                              |   |   | 1,393,485  |   |   |   | 1,201,957 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Costs      and expenses                                                                           |   |   |       |   |   |   |   |   |
|     Casino      games                                                         |   |   | (201,851   | )      |   |   | 519,682 |   |
|     Product      costs                                                        |   |   | 285,360    |   |   |   | 133,112 |   |
|     Other                                                                     |   |   | 330,913    |   |   |   | 304,652 |   |
|                                                                                              |   |   | 414,422    |   |   |   | 957,446 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Gross      operating income                                                                       |   |   | 979,063    |   |   |   | 244,511 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Other      operating expenses                                                                     |   |   |       |   |   |   |   |   |
|     Selling,      general, and administrative                                 |   |   | 1,497,636  |   |   |   | 1,502,973 |   |
|     Research      and development                                             |   |   | 209,713    |   |   |   | 371,517 |   |
|     Depreciation      and amortization                                        |   |   | 207,039    |   |   |   | 200,137 |   |
|                                                                                              |   |   | 1,914,388  |   |   |   | 2,074,627 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Operating      loss                                                                               |   |   | (935,325   | )      |   |   | (1,830,116 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Other      income (expense)                                                                       |   |   |       |   |   |   |   |   |
|     Finance      costs                                                        |   |   | (323,607   | )      |   |   | (490,440 | ) |
|     Interest      income and other                                            |   |   | 28,505     |   |   |   | 2,233 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Net      loss                                                                                     |   |   | (1,230,427 | )      |   |   | (2,318,323 | ) |
| Provision      for cumulative preferred dividends                                                 |   |   | -          |   |   |   | (52,500 | ) |
| Net      loss attributed to common stockholders                                         |   | $      | (1,230,427 | )      |   | $      | (2,370,823 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Net      loss per share attributed to common stockholders                               |   | $      | (0.10      | )      |   | $      | (0.17 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Weighted      average shares outstanding                                                          |   |   | 11,929,403 |   |   |   | 13,689,403 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
|                                                                                              |   |   |       |   |   |   |   |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| The      accompanying notes are an integral part of these consolidated financial      statements. |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                                              |   | 2007   |       |   | 2008   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Revenues                                                                                          |   |   |       |   |   |   |
|     Casino      games                                                         |   | $      | 1,303,129  |   |   | $      | 1,868,701 |   |
|     Product      sales                                                        |   |   | 1,377,735  |   |   |   | 927,738 |   |
|     Other                                                                     |   |   | 1,055,794  |   |   |   | 716,283 |   |
|                                                                                              |   |   | 3,736,658  |   |   |   | 3,512,722 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Costs      and expenses                                                                           |   |   |       |   |   |   |   |   |
|     Casino      games                                                         |   |   | 385,699    |   |   |   | 1,840,511 |   |
|     Product      costs                                                        |   |   | 779,941    |   |   |   | 451,310 |   |
|     Other                                                                     |   |   | 999,390    |   |   |   | 888,378 |   |
|                                                                                              |   |   | 2,165,030  |   |   |   | 3,180,199 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Gross      operating income                                                                       |   |   | 1,571,628  |   |   |   | 332,523 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Other      operating expenses                                                                     |   |   |       |   |   |   |   |   |
|     Selling,      general, and administrative                                 |   |   | 4,570,312  |   |   |   | 4,865,008 |   |
|     Research      and development                                             |   |   | 794,383    |   |   |   | 1,070,057 |   |
|     Depreciation      and amortization                                        |   |   | 639,084    |   |   |   | 628,846 |   |
|                                                                                              |   |   | 6,003,779  |   |   |   | 6,563,911 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| Operating      loss                                                                               |   |   | (4,432,151 | )      |   |   | (6,231,388 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Other      income (expense)                                                                       |   |   |       |   |   |   |   |   |
|     Finance      costs                                                        |   |   | (1,198,361 | )      |   |   | (1,612,902 | ) |
|     Interest      income and other                                            |   |   | 127,233    |   |   |   | (89,156 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Net      loss                                                                                     |   |   | (5,503,279 | )      |   |   | (7,933,446 | ) |
| Provision      for cumulative preferred dividends                                                 |   |   | -          |   |   |   | (84,000 | ) |
| Net      loss attributed to common stockholders                                         |   | $      | (5,503,279 | )      |   | $      | (8,017,446 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Net      loss per share attributed to common stockholders                               |   | $      | (0.49      | )      |   | $      | (0.61 | ) |
|                                                                                              |   |   |       |   |   |   |   |   |
| Weighted      average shares outstanding                                                          |   |   | 11,175,256 |   |   |   | 13,249,905 |   |
|                                                                                              |   |   |       |   |   |   |   |   |
|                                                                                              |   |   |       |   |   |   |   |   |
|                                                                                              |   |   |       |   |   |   |   |   |
| The      accompanying notes are an integral part of these consolidated financial      statements. |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

|                                                                                  |   | Series      A ConvertiblePreferredStock |   |   | Series      C ConvertiblePreferredStock |   |   | Series      D ConvertiblePreferredStock |   |   | Series      E ConvertiblePreferredStock |   |   | Series      F ConvertiblePreferredStock |   |   | Series      G ConvertiblePreferredStock |   |   | Series      H ConvertiblePreferredStock |   |   | CommonStock(IncludingSeries      A) |   |   | AdditionalPaid-InCapital |   |   | Less      Due FromOfficers      andStockholders |   |   | Deficit |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------|--------|--------|-------------------------------------------------|--------|--------|---------|--------|
| Balances,      December 31, 2007                                                      |   |                                    | -      |   |                                    | $      | 35     |                                    |   | $      | 125                                     |   |   | $                                       | 744    |   |                                    |   | -      |                                    |   |   | -                                   |   |   |                     | -      |   |                                            | $      | 12,563 |    |   | $ | 26,497,097 |   |   | $ | (235,414 | ) |   | $ | (28,562,419 | ) |
| Net      loss                                                                         |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   |   |   |   |   |   |   |   |   | (7,933,446 | ) |
| Dividends      payable Series F and Series G Convertible Preferred Stock              |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   |   |   |   |   |   |   |   |   | (84,000 | ) |
| Exercise      of warrants and options                                                 |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 93     |    |   |   | 108,705 |   |   |   | (8,412 | ) |   |   |   |   |
| Issuance      of warrants                                                             |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   | 337,470 |   |   |   |   |   |   |   |   |   |
| Other      Stock based compensation                                                   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 255    |    |   |   | 509,079 |   |   |   | 52,000 |   |   |   |   |   |
| Cash      received from employees and stockholders                                    |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   |   |   |   |   | 9,000 |   |   |   |   |   |
| Conversion      of Series B Convertible Preferred Stock to Common Stock Series      A |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 254    |    |   |   | 253,996 |   |   |   |   |   |   |   |   |   |
| Conversion      of Series C Convertible Preferred Stock to Common Stock Series      A |   |                                    |   |   |                                    |   | (35    | )                                       |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 175    |    |   |   | (140 | ) |   |   |   |   |   |   |   |   |
| Conversion      of Series D Convertible Preferred Stock to Common Stock Series      A |   |                                    |   |   |                                    |   |   |                                    |   |   | (125                                    | )      |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 125    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of Series E Convertible Preferred Stock                                     |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    | 67     |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   | 334,933 |   |   |   |   |   |   |   |   |   |
| Sale      of Series F Convertible Preferred Stock                                     |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   | 200    |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   | 639,872 |   |   |   |   |   |   |   |   |   |
| Sale      of Series G Convertible Preferred Stock                                     |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   | 150                                 |   |   |                     |   |   |                                            |   |   |    |   |   | 479,904 |   |   |   |   |   |   |   |   |   |
| Sale      of Series H Convertible Preferred Stock                                     |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     | 99     |   |                                            |   |   |    |   |   | 492,402 |   |   |   |   |   |   |   |   |   |
| Sale      of Common Stock Series A to Employees                                       |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 55     |    |   |   | 110,667 |   |   |   |   |   |   |   |   |   |
| Sale      of Common Stock Series A                                                    |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   | 500    |    |   |   | 629,374 |   |   |   |   |   |   |   |   |   |
| Balances,      September 30, 2008                                                     |   | $                                       | -      |   |                                    | $      | -      |                                    |   | $      | -                                       |   |   | $                                       | 811    |   |                                    | $      | 200    |                                    |   | $      | 150                                 |   |   | $                        | 99     |   |                                            | $      | 14,020 |    |   | $ | 30,393,359 |   |   | $ | (182,826 | ) |   | $ | (36,579,865 | ) |
|                                                                                  |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                    |   |   |                                |   |   |                     |   |   |                                            |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |

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CONSOLIDATED STATEMENTS OF CASH FLOW

|                                                         |   | 2007   |       |    | 2008   |   |
|--------------------------------------------------------------|--------|--------|------------|---------|--------|--------|
| Operating      activities                                    |   |   |       |    |   |   |
| Net      loss                                                |   | $      | (5,503,279 | )       |   | $      | (7,933,446 | ) |
| Marketable      security received for licensing fee          |   |   | 23,849     |    |   |   | 42,444 |   |
| Depreciation      and amortization of equipment and software |   |   | 277,063    |    |   |   | 266,462 |   |
| Loss      on disposal of assets                              |   |   | -          |    |   |   | 72,040 |   |
| Amortization      of debt issuance cost and intangibles      |   |   | 1,101,051  |    |   |   | 1,653,545 |   |
| Fair      value adjustment of debt derivative liability      |   |   | (142,544   | )  |   |   | (141,307 | ) |
| Stock-based      compensation to employees and consultants   |   |   | 483,994    |    |   |   | 689,113 |   |
| Other                                                        |   |   | 32,939     |    |   |   | (1,724 | ) |
| Changes      in operating assets and liabilities:            |   |   |       |    |   |   |   |   |
|    Accounts      receivable                   |   |   | (39,130    | )       |   |   | 28,789 |   |
|    Inventories                                |   |   | (687,681   | )  |   |   | 64,105 |   |
|    Prepaid      expenses, deposits and other  |   |   | 277,057    |    |   |   | 88,418 |   |
|    Accounts      payable and accrued expenses |   |   | 23,241     |    |   |   | 1,266,471 |   |
|    Progressive      jackpot liability         |   |   | (807,930   | )  |   |   | 560,918 |   |
| Net      cash (used in) operating activities                 |   |   | (4,961,370 | )       |   |   | (3,344,172 | ) |
|                                                         |   |   |       |    |   |   |   |   |
| Investing      activities                                    |   |   |       |    |   |   |   |   |
| Purchase      of property and equipment                      |   |   | (251,315   | )       |   |   | (248,619 | ) |
| Proceeds      from sale of equipment                         |   |   | -          |    |   |   | 55,250 |   |
| Jackpot      reserve deposits                                |   |   | 2,304,474  |    |   |   | (1,298,640 | ) |
| Net      cash provided by (used in) investing activities     |   |   | 2,053,159  |    |   |   | (1,492,009 | ) |
|                                                         |   |   |       |    |   |   |   |   |
| Financing      activities                                    |   |   |       |    |   |   |   |   |
| Proceeds      from litigation settlements                    |   |   | 42,215     |    |   |   | - |   |
| Repayment      of debt                                       |   |   | (8,081     | )       |   |   | (61,747 | ) |
| Sale      of Series E Convertible Preferred Stock            |   |   | 1,809,000  |    |   |   | 335,000 |   |
| Sale      of Series F Convertible Preferred Stock            |   |   | -          |    |   |   | 640,072 |   |
| Sale      of Series G Convertible Preferred Stock            |   |   | -          |    |   |   | 480,054 |   |
| Sale      of Series H Convertible Preferred Stock            |   |   | -          |    |   |   | 492,501 |   |
| Redemption      of Series B Convertible Preferred Stock      |   |   | (179,500   | )       |   |   | (137,500 | ) |
| Advances      from stockholders                              |   |   | -          |    |   |   | 2,100,000 |   |
| Exercise      of warrants and options for common stock       |   |   | 573,623    |    |   |   | 100,387 |   |
| Collection      of stock subscription receivables            |   |   | -          |    |   |   | 9,000 |   |
| Sale      of common stock                                    |   |   | -          |    |   |   | 740,596 |   |
| Net      cash provided by financing activities               |   |   | 2,237,257  |    |   |   | 4,698,363 |   |
|                                                         |   |   |       |    |   |   |   |   |
| Net      decrease in cash and cash equivalents               |   |   | (670,954   | )  |   |   | (137,818 | ) |
| Cash      and cash equivalents, beginning of period          |   |   | 1,675,588  |    |   |   | 489,262 |   |
| Cash      and cash equivalents, end of period                |   | $      | 1,004,634  |    |   | $      | 351,444 |   |
|                                                         |   |   |       |    |   |   |   |   |

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| Non-cash      investing and financing activities                                                                    |   |   |     |    |   |   |    |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|----------|---------|--------|--------|---------|--------|
| Conversion      of Series B Convertible Preferred Stock to     Common      Stock Series A  |   | $      | (879,450 | )  |   | $      | 254,250 |   |
| Exercise      of stock warrants and options increasing     subscriptions      receivable   |   |   | (366,000 | )  |   |   | 8,412   |   |
| Conversion      of Series C Convertible Preferred Stock to     Common      Stock Series A  |   |   | 15       |    |   |   | 35      |   |
| Conversion      of Series D Convertible Preferred Stock to     Common      Stock Series A  |   |   | -        |    |   |   | 125     |   |
| Exercise      of warrants in settlement of accounts payable                                                         |   |   | 257,750  |    |   |   |    |   |
| Cost      of warrants for debt modification                                                                         |   |   | 255,273  |    |   |   |    |   |
| Equipment      acquired directly with proceeds of new    borrowing                              |   |   |     |    |   |   | 34,025  |   |
| Debt      retired through issuance of Common Stock Series A                                                         |   |   |     |    |   |   | 107,500 |   |
| Prepayment      of lease costs through issuance of Common     Stock      Series A          |   |   |     |    |   |   | 106,000 |   |
| Accrued      and prepaid interest added to face amount of note    due      to debt modification |   |   |     |    |   |   | 801,250 |   |
| Equipment      and software transferred to inventories                                                              |   |   |     |    |   |   | 17,401  |   |
| Dividends      payable Series F and Series G Convertible    Preferred      Stock                |   |   |     |    |   |   | 84,000  |   |
|   The      accompanying notes are an integral part of these consolidated financial      statements.       |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                |   | December      31, 2007 |      |   | September      30, 2008(Unaudited) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|------------------------------------|--------|
| Software                                                                        |   | $                      | 422,560   |   |                               | $      | 425,145 |   |
| Production      equipment                                                       |   |                   | 1,669,461 |   |                               |   | 1,413,522 |   |
| Equipment,      furniture, and fixtures                                                                                                                                                                                                                                                                                                             |   |                   | 463,261   |   |                               |   | 549,854 |   |
| Leasehold      improvements                                                     |   |                   | 43,627    |   |                               |   | 43,627 |   |
|                                                                                                                                                                                                                                                                                                                                                |   |                   | 2,598,909 |   |                               |   | 2,432,148 |   |
| Less      accumulated depreciation and   amortization                                                                                                                                                                                                                                                                                |   |                   | 1,565,560 |   |                               |   | 1,527,309 |   |
|                                                                                                                                                                                                                                                                                                                                                |   | $                      | 1,033,349 |   |                               | $      | 904,839 |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

|                                                                   |   | December      31, 2007 |      |   | September      30, 2008(Unaudited) |   |
|------------------------------------------------------------------------|--------|------------------------|-----------|--------|------------------------------------|--------|
| PlayerVision      technology patents                                   |   | $                      | 1,016,236 |   |                               | $      | 1,016,236 |   |
| PlayerVision      technology rights for “at home” wagering |   |                   | 1,400,000 |   |                               |   | 1,400,000 |   |
|                                                                   |   |                   | 2,416,236 |   |                               |   | 2,416,236 |   |
| Less      accumulated amortization                                     |   |                   | 1,098,867 |   |                               |   | 1,460,890 |   |
|                                                                   |   | $                      | 1,317,369 |   |                               | $      | 955,346 |   |

| 2008      (4th      quarter) |   | $      | 120,676 |   |
|------------------------------|--------|--------|---------|--------|
| 2009                         |   |   | 482,702 |   |
| 2010                         |   |   | 303,307 |   |
| 2011                         |   |   | 48,661  |   |
| 2012                         |   |   | -0-     |   |
| 2013                         |   |   | -0-     |   |
|                         |   | $      | 955,346 |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                           |   | December      31, 2007 |      |   | September      30, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|-------------------------|--------|
| Debt      derivative      liability                                                        |   | $                      | 1,592,263 |   |                    | $      | 1,450,956 |   |
| Bridge      financing                                                                      |   |                   | 4,342,345 |   |                    |   | 5,612,197 |   |
| Settlement      due third      parties                                                     |   |                   | 614,027   |   |                    |   | 614,027 |   |
| Other      notes      payable                                                              |   |                   | 179,840   |   |                    |   | 44,618 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   | $                      | 6,728,475 |   |                    | $      | 7,721,798 |   |
| Less      amounts due within one year                                                                                                                                                                                                                                                                                                                          |   |                   | 787,550   |   |                    |   | 632,842 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   | $                      | 5,940,925 |   |                    | $      | 7,088,956 |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

| Balance      December 31, 2007   |   |   | 6,174,862 |   |
|----------------------------------|--------|--------|-----------|--------|
|                             |   | $      | 2.33      |   |
| Granted                          |   |   | 1,565,000 |   |
|                             |   | $      | 2.99      |   |
| Exercised                        |   |   | (92,659   | )      |
|                             |   | $      | 1.17      |   |
| Forfeited                        |   |   | (552,994  | )      |
|                             |   | $      | 2.49      |   |
| Balance,      September 30, 2008 |   |   | 7,094,209 |   |
|                             |   | $      | 2.48      |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

|                             |   |       |      |   | Weighted |   |
|----------------------------------|--------|------------|-----------|--------|----------|--------|
|                             |   | Non-vested |      |   | Average  |   |
|                             |   | Options    |      |   | Price    |   |
|                             |   |       |      |   |     |   |
| Balance,      December 31, 2007  |   |       | 515,610   |   |     | $      | 5.00 |   |
| Granted                          |   |       | 969,000   |   |     | $      | 3.01 |   |
| Vested                           |   |       | (184,010  | )      |     | $      | 5.00 |   |
| Forfeited                        |   |       | -         |   |     |   | - |   |
| Balance,      September 30, 2008 |   |       | 1,300,600 |   |     | $      | 3.52 |   |

|                             |   |       |     |   | Weighted |   |
|----------------------------------|--------|------------|----------|--------|----------|--------|
|                             |   | Non-vested |     |   | Average  |   |
|                             |   | Warrants   |     |   | Price    |   |
|                             |   |       |     |   |     |   |
| Balance,      December 31, 2007  |   |       | 270,333  |   |     | $      | 2.85 |   |
| Granted                          |   |       | 93,750   |   |     | $      | 2.50 |   |
| Vested                           |   |       | (237,000 | )      |     | $      | 2.98 |   |
| Forfeited                        |   |       | -        |   |     |   | - |   |
| Balance,      September 30, 2008 |   |       | 127,083  |   |     | $      | 2.35 |   |

|     |   |     |   |   |        |   |      | Weighted      Average |   |   |        |   |   | Weighted      Average |      |
|----------|--------|----------|--------|--------|-------------|--------|-----------|-----------------------|--------|--------|-------------|--------|--------|-----------------------|-----------|
|     |   | Exercise |   |   | Number      |   |      | Remaining             |   |   | Number      |   |   | Remaining             |      |
|     |   | Price    |   |   | Outstanding |   |      | Life      in years    |   |   | Exercisable |   |   | Life      in years    |      |
| Options  |   | $        | 1.00   |   |        |   | 270,000   |                  |   |   | 1.3         |   |   |                  | 270,000   |   |   |   | 1.3 |   |
|     |   | $        | 2.00   |   |        |   | 460,000   |                  |   |   | 4.5         |   |   |                  | 158,500   |   |   |   | 4.5 |   |
|     |   | $        | 2.50   |   |        |   | 540,000   |                  |   |   | 4.8         |   |   |                  | 135,000   |   |   |   | 4.8 |   |
|     |   | $        | 3.00   |   |        |   | 100,900   |                  |   |   | 1.4         |   |   |                  | 100,900   |   |   |   | 1.4 |   |
|     |   | $        | 4.55   |   |        |   | 30,000    |                  |   |   | 1.0         |   |   |                  | 30,000    |   |   |   | 1.0 |   |
|     |   | $        | 5.00   |   |        |   | 1,123,000 |                  |   |   | 4.0         |   |   |                  | 523,620   |   |   |   | 3.9 |   |
| Warrants |   | $        | 1.00   |   |        |   | 377,500   |                  |   |   | 1.5         |   |   |                  | 367,500   |   |   |   | 1.4 |   |
|     |   | $        | 1.48   |   |        |   | 2,675,000 |                  |   |   | 2.6         |   |   |                  | 2,675,000 |   |   |   | 2.6 |   |
|     |   | $        | 1.50   |   |        |   | 30,000    |                  |   |   | 4.6         |   |   |                  | 30,000    |   |   |   | 4.6 |   |
|     |   | $        | 2.00   |   |        |   | 195,000   |                  |   |   | 1.8         |   |   |                  | 195,000   |   |   |   | 1.8 |   |
|     |   | $        | 2.10   |   |        |   | 23,809    |                  |   |   | 2.1         |   |   |                  | 23,809    |   |   |   | 2.1 |   |
|     |   | $        | 2.50   |   |        |   | 125,000   |                  |   |   | 4.9         |   |   |                  | 31,250    |   |   |   | 4.9 |   |
|     |   | $        | 3.00   |   |        |   | 854,000   |                  |   |   | 2.3         |   |   |                  | 854,000   |   |   |   | 2.3 |   |
|     |   | $        | 4.00   |   |        |   | 100,000   |                  |   |   | 1.4         |   |   |                  | 100,000   |   |   |   | 1.4 |   |
|     |   | $        | 4.55   |   |        |   | 40,000    |                  |   |   | 0.1         |   |   |                  | 40,000    |   |   |   | 0.1 |   |
|     |   | $        | 5.00   |   |        |   | 150,000   |                  |   |   | 2.5         |   |   |                  | 126,667   |   |   |   | 2.3 |   |
|     |   |     |   |   |        |   | 7,094,209 |                  |   |   | 2.9         |   |   |                  | 5,661,246 |   |   |   | 2.5 |   |

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|                                                                                                                                                                                                                             |   | December      31, 2007 |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|
| Present      value of Nevada Numbers $5.0 million base         progressive jackpot, payable in 20 equal annual         installments using a 7.25% discount rate, the prevailing         prime rate |   | $                      | 2,786,153  |   |
| Present      value at 7.25% of the progressive jackpot meter         for Nevada Numbers                                                                                                                                |   |                   | 13,446     |   |
| Less      portion insured through conventional insurers                                                                                                                                                                          |   |                   | (2,900,000 | ) |
| Other      games                                                                                                                                                                                                                 |   |                   | 475,909    |   |
|                                                                                                                                                                                                                             |   | $                      | 375,508    |   |

|                                                                                                                                                                                                                            |   | September      30, 2008 |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
| Present      value of Nevada Numbers $5.0 million base         progressive jackpot, payable in 20 equal annual         installments using a 5.0% discount rate, the prevailing         prime rate |   | $                       | 3,271,330  |   |
| Present      value at 5% of the Nevada Numbers increase to         the progressive jackpot meter                                                                                                                      |   |                    | 56,235     |   |
| Less      portion insured through conventional insurers                                                                                                                                                                         |   |                    | (2,900,000 | ) |
| Other      games                                                                                                                                                                                                                |   |                    | 508,861    |   |
|                                                                                                                                                                                                                            |   | $                       | 936,426    |   |

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LAS VEGAS GAMING, INC. AND SUBSIDIARIES

|                         |   | Nine      months ended September 30, |       |
|------------------------------|--------|--------------------------------------|------------|
|                         |   | 2007                                 |       |   | 2008 |   |
| Revenue                      |   |                                 |       |   |   |   |
| Casino      Games            |   | $                                    | 1,303,129  |   |   | $ | 1,868,701 |   |
| Product      Sales           |   |                                 | 1,377,735  |   |   |   | 927,738 |   |
| Other                        |   |                                 | 1,055,794  |   |   |   | 716,283 |   |
|                         |   | $                                    | 3,736,658  |   |   | $ | 3,512,722 |   |
|                         |   |                                 |       |   |   |   |   |   |
| Operating      income (loss) |   |                                 |       |   |   |   |   |   |
| Casino      Games            |   | $                                    | 917,430    |   |   | $ | 28,190 |   |
| Product      Sales           |   |                                 | 597,794    |   |   |   | 476,428 |   |
| Other                        |   |                                 | 56,404     |   |   |   | (172,095 | ) |
| Unallocated                  |   |                                 | (6,003,779 | ) |   |   | (6,563,911 | ) |
|                         |   | $                                    | (4,432,151 | ) |   | $ | (6,231,388 | ) |
|                         |   |                                 |       |   |   |   |   |   |
| Identifiable      assets     |   |                                 |       |   |   | September      30, 2008 |   |
| Casino      Games            |   |                                 |       |   |   | $ | 3,974,808 |   |
| Product      Sales           |   |                                 |       |   |   |   | 315,723 |   |
| Other                        |   |                                 |       |   |   |   | 398,492 |   |
| Unallocated                  |   |                                 |       |   |   |   | 2,430,445 |   |
|                         |   |                                 |       |   |   | $ | 7,119,468 |   |

|                      |   | Nine      months ended September 30, |    |
|---------------------------|--------|--------------------------------------|---------|
| Capital      expenditures |   | 2007                                 |    |   | 2008 |   |
| Casino      Games         |   | $                                    | 190,428 |   |   | $ | 118,535 |   |
| Product      Sales        |   |                                 | 1,509   |   |   |   | 0 |   |
| Other                     |   |                                 | 33,152  |   |   |   | 98,947 |   |
| Unallocated               |   |                                 | 57,819  |   |   |   | 65,162 |   |
|                      |   | $                                    | 282,908 |   |   | $ | 282,644 |   |

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Item 2.

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Item 3.

Item 4T.

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PART II – OTHER INFORMATION

Item 1. 

Item 1A.

Item 2. 

Item 3. 

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Item 4. 

Item5.  

Item 6. 

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| 10.1   |   | Agreement      dated July 17, 2008 between registrant and IGT, incorporated by reference      to registrant’s Quarterly Report on Form 10-Q filed with the Securities      and Exchange Commission on August 19, 2008                                                                                                                                                                                                                                                   |   |   |
| 10.2   |   | First      Amendment to Agreement dated August 15, 2008 between registrant and IGT,      incorporated by reference to registrant’s Quarterly Report on Form 10-Q      filed with the Securities and Exchange Commission on August 19,      2008                                                                                                                                                                                                                         |   |   |
| 10.3   |   | Second      Amendment to Agreement executed August 21, 2008 (to be effective as of      August 15, 2008) between registrant and IGT, incorporated by reference to      registrant’s Current Report on Form 8-K filed with the Securities and      Exchange Commission on August 27, 2008                                                                                                                                                                                |   |   |
| 10.4   |   | Third      Amendment to Agreement dated August 29, 2008 between registrant and IGT,      incorporated by reference to registrant’s Current Report on Form 8-K filed      with the Securities and Exchange Commission on September 5,      2008                                                                                                                                                                                                                          |   |   |
| 10.5   |   | Fourth      Amendment to Agreement dated September 11, 2008 between registrant and      IGT, incorporated by reference to registrant’s Current Report on Form 8-K      filed with the Securities and Exchange Commission on September 17,      2008                                                                                                                                                                                                                     |   |   |
| 10.6   |   | Fifth      Amendment to Agreement dated September 18, 2008 between      registrant      and IGT, incorporated by reference to registrant’s Current Report on Form      8-K filed with the Securities and Exchange Commission on September 23,      2008                                                                                                                                                                                                                 |   |   |
| 10.7   |   | Sixth      Amendment to Agreement dated September 24, 2008 between registrant and      IGT, incorporated by reference to registrant’s Current Report on Form 8-K      filed with the Securities and Exchange Commission on September 30,      2008                                                                                                                                                                                                                      |   |   |
| 10.8   |   | Asset      Acquisition Agreement executed on October 1, 2008, and dated as of      September 29, 2008 between registrant, Las Vegas Gaming Acquisition      Corp., Adline Network Holdings, Inc., Adline Media, LLC, Adline Network,      LLC, Freeview Network, LLC, Sam Johnson and Larry L. Enterline,      incorporated by reference to registrant’s Current Report on Form 8-K filed      with the Securities and Exchange Commission on October 3,2008  |   |   |
| 10.9   |   | Investment      Agreement executed on October 1, 2008 and dated as of  September      30, 2008 between registrant and IGT, incorporated by reference to      registrant’s Current Report on Form 8-K filed with the Securities and      Exchange Commission on October 7, 2008                                                                                                                                                                                |   |   |
| 10.10  |   | Form      of Warrant to purchase Common Stock and Common Stock Series A issuable to      IGT, incorporated by reference to registrant’s Current Report on Form 8-K      filed with the Securities and Exchange Commission on October 7,      2008                                                                                                                                                                                                                       |   |   |
| 10.11  |   | Intellectual Property Access Agreement executed on      October 1, 2008 and dated as of September 30, 2008 between registrant and      IGT                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.12* |   | License and Application Support Agreement executed on      October 1, 2008 and dated as of September 30, 2008 between registrant and      IGT                                                                                                                                                                                                                                                                                                                                 |   |   |

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| 10.13*                                                                                                                                                                                                                                                                               |   | Retrofit License Agreement executed on October 1, 2008      and dated as of September 30, 2008 between registrant and      IGT                                                                                                                                                                                                            |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| 10.14                                                                                                                                                                                                                                                                                |   | Satisfaction      and Termination Agreement dated as of October 24, 2008 between registrant,      Imagineering Gaming, Inc., Las Vegas Keno, Inc. and CAMOFI MASTER LDC,      incorporated by reference to registrant’s Current Report on Form 8-K filed      with the Securities and Exchange Commission on October 28,      2008  |   |   |
| 10.15                                                                                                                                                                                                                                                                                |   | First      Amendment to Warrants dated as of October 24, 2008 between registrant and      CAMOFI MASTER LDC, incorporated by reference to registrant’s Current      Report on Form 8-K filed with the Securities and Exchange Commission on      October 28, 2008                                                                   |   |   |
| 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                                                                                                                                                                                                                                                             |   |   |
|                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                      |   |   |
| *Confidential      treatment has been requested for portions of this      exhibit.  These portions have been omitted from the exhibit      filed with this Quarterly Report on Form 10-Q and have been filed      separately with the Securities and Exchange  Commission. |

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SIGNATURE

|   |                   | Las      Vegas Gaming, Inc. |
|--------|------------------------|-----------------------------|
|   |                   | (Registrant)                |
|   |                   |                        |   |   |
| Date:  | November      19, 2008 | By:                         | /s/      Jon D. Berkley |   |
|   |                   |                        | Jon      D. Berkley |   |
|   |                   | Its:                        | President      and Chief Executive Officer |   |
|   |                   |                        | (Principal      Executive Officer) |   |
|   |                   |                        |   |   |
| Date:  | November      19, 2008 | By:                         | /s/      Bruce A. Shepard |   |
|   |                   |                        | Bruce      A. Shepard |   |
|   |                   | Its:                        | Chief      Financial Officer |   |
|   |                   |                        | (Principal      Financial Officer) |   |

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| Exhibit                                                                                                                                                                                                                                                                                             |   | Document      Description                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.11                                                                                                                                                                                                                                                                                               |   | Intellectual Property Access Agreement executed on      October 1, 2008 and dated as of September 30, 2008 between registrant and      IGT     |
| 10.12*                                                                                                                                                                                                                                                                                              |   | License and Application Support Agreement executed on      October 1, 2008 and dated as of September 30, 2008 between registrant and      IGT  |
| 10.13*                                                                                                                                                                                                                                                                                              |   | Retrofit License Agreement executed on October 1, 2008      and dated as of September 30, 2008 between registrant and      IGT                 |
| 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                                                                  |
|  *Confidential      treatment has been requested for portions of this      exhibit.  These portions have been omitted      from the exhibit filed with this Quarterly Report on Form 10-Q and have      been filed      separately      with the Securities and Exchange Commission. |
|                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                |

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