----

----

| þ | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------|

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

|                                                          |   |                             |
|---------------------------------------------------------------|--------|----------------------------------|
| Nevada                                                        |   | 75-3225181                       |
| (State or other jurisdiction ofincorporation or organization) |   | (IRS EmployerIdentification No.) |

| Large accelerated filer  o                                                                                     |   | Accelerated filer  o        |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|
| Non-accelerated filer  o(Do not check if a smaller reporting company)  |   | Smaller reporting company þ |

----

----

| PART I. FINANCIAL INFORMATION |                                                                                              |
|-------------------------------|---------------------------------------------------------------------------------------------------|
|                          |                                                                                              |   |
|  ITEM 1.       |  Financial Statements                                                                   | 1 |
|                          |                                                                                              |   |
|  ITEM 2.                 |  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14 |
|                          |                                                                                              |   |
|  ITEM 3.                 |  Quantitative and Qualitative Disclosures About Market Risk                                  | 17 |
|                          |                                                                                              |   |
|  ITEM 4T.                |  Controls and Procedures                                                                     | 17 |
|                          |                                                                                              |   |
| PART II. OTHER INFORMATION    |                                                                                              |
|                          |                                                                                              |   |
|  ITEM 1.                 |  Legal Proceedings                                                                           | 18 |
|                          |                                                                                              |   |
|  ITEM 1A.           |  Risk Factors                                                                           | 18 |
|                          |                                                                                              |   |
|  ITEM 2.                 |  Unregistered Sales of Equity Securities and Use of Proceeds                                 | 18 |
|                          |                                                                                              |   |
|  ITEM 3.                 |  Defaults upon Senior Securities                                                             | 18 |
|                          |                                                                                              |   |
|  ITEM 4.                 |  Submission of Matters to a Vote of Security Holders                                         | 18 |
|                          |                                                                                              |   |
|  ITEM 5.                 |  Other Information                                                                           | 19 |
|                          |                                                                                              |   |
|  ITEM 6.                 |  Exhibits                                                                                    | 19 |
|                          |                                                                                              |   |
| SIGNATURES                    |                                                                                              | 20 |

----

| ROTATE BLACK, INC. AND SUBSIDIARY |   |
|-----------------------------------|--------|
| (A Development Stage Company)     |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED BALANCE SHEET        |   |

|                                              |   | March 31,2010(Unaudited) |   |       |  June 30,2010  |   |
|-------------------------------------------------------------|--------|--------------------------|--------|------------|--------------------------|--------|
| ASSETS                                                      |   |                     |   |       |                     |   |   |
|                                                        |   |                     |   |       |                     |   |   |
| Current Assets                                              |   |                     |   |       |                     |   |   |
|     Cash                                |   |                     | $      | 3,022      |                     |   | $ | 15,453 |   |
|     Prepaid expenses                    |   |                     |   | 19,770     |                     |   |   | 88,902 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|     Total current assets                |   |                     |   | 22,792     |                     |   |   | 104,355 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| Unbilled development advances                               |   |                     |   | 2,249,680  |                     |   |   | 2,069,499 |   |
| Fixed assets - net                                          |   |                     |   | 36,665     |                     |   |   | 49,179 |   |
| Contract rights                                             |   |                     |   | 6,323,884  |                     |   |   | 6,323,884 |   |
| Intangible assets                                           |   |                     |   | 374,265    |                     |   |   | 374,265 |   |
| Investment in joint venture                                 |   |                     |   | -          |                     |   |   | 139,781 |   |
| Land purchase deposit                                       |   |                     |   | 7,920,674  |                     |   |   | 7,049,142 |   |
| Deferred development cost                                   |   |                     |   | 397,980    |                     |   |   | - |   |
| Deferred financing fee                                      |   |                     |   | 10,000     |                     |   |   | - |   |
| Security deposit                                            |   |                     |   | 3,600      |                     |   |   | 3,600 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|  TOTAL ASSETS                                          |   |                     | $      | 17,339,540 |                     |   | $ | 16,113,705 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| Current liabilities                                         |   |                     |   |       |                     |   |   |   |   |
| Accounts payable and accrued expenses                       |   |                     | $      | 2,176,688  |                     |   | $ | 1,761,367 |   |
| Note payable                                                |   |                     |   | 125,000    |                     |   |   | 268,000 |   |
| Note payable - truck - current portion                      |   |                     |   | 3,835      |                     |   |   | 5,213 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| Total current liabilities                                   |   |                     |   | 2,305,523  |                     |   |   | 2,034,580 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| Note payable - truck                                        |   |                     |   | 10,042     |                     |   |   | 12,628 |   |
| Loan payable - stockholder                                  |   |                     |   | 462,402    |                     |   |   | 1,675,932 |   |
| Deferred revenues                                           |   |                     |   | 49,821     |                     |   |   | 47,078 |   |
| Shares to be issued                                         |   |                     |   |       |                     |   |   | 3,995,467 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| TOTAL LIABILITIES                                           |   |                     |   | 2,827,788  |                     |   |   | 7,765,685 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| STOCKHOLDERS'  EQUITY                             |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| Common stock, $0.01 par value, 100,000,000                  |   |                     |   |       |                     |   |   |   |
| shares authorized; 78,015,389 and 67,321,858                |   |                     |   |       |                     |   |   |   |
|     shares issued and outstanding as of |   |                     |   |       |                     |   |   |   |   |
|     March 31, 2010 and June 30, 2009,   |   |                     |   |       |                     |   |   |   |   |
|      respectively                  |   |                     |   | 780,154    |                     |   |   | 673,219 |   |
| Additional paid-in capital                                  |   |                     |   | 16,726,719 |                     |   |   | 8,334,185 |   |
| Subscription receivable                                     |   |                     |   | (801,039   | )                        |   |   | - |   |
| Accumulated deficit                                         |   |                     |   | (3,314,013 | )                        |   |   | (1,789,498 | ) |
| TOTAL ROTATE BLACK, INC. STOCKHOLDERS' EQUITY               |   |                     |   | 13,391,821 |                     |   |   | 7,217,906 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| NONCONTROLLING INTEREST                                     |   |                     |   | 1,119,931  |                     |   |   | 1,130,114 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| TOTAL STOCKHOLDERS' EQUITY                                  |   |                     |   | 14,511,752 |                     |   |   | 8,348,020 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  |   |                     | $      | 17,339,540 |                     |   | $ | 16,113,705 |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |
|                                                        |   |                     |   |       |                     |   |   |   |   |

----

| ROTATE BLACK, INC. AND SUBSIDIARY                                               |   |
|---------------------------------------------------------------------------------|--------|
| (A Development Stage Company)                                                   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENT OF OPERATIONS                                            |   |
| (UNAUDITED)                                                                     |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   | August 2, 2006 |   |
|                                                                            |   | Three Months Ended |   |   | Nine Months Ended |   |   | (Inception) |   |
|                                                                            |   | March 31, |   |   | March 31, |   |   | Through |   |
|                                                                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | March 31, 2010 |   |
| Operating expenses                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salary expense                                                                  |   | $ | 48,399 |   |   | $ | 108,143 |   |   | $ | 184,946 |   |   | $ | 227,669 |   |   | $ | 297,184 |   |
| Stock based compensation                                                        |   |   | 112,500 |   |   |   | - |   |   |   | 287,500 |   |   |   | 741,570 |   |   |   | 1,054,070 |   |
| General and administrative expenses                                             |   |   | 562,382 |   |   |   | 147,727 |   |   |   | 852,113 |   |   |   | 369,036 |   |   |   | 1,558,200 |   |
| Write-off investment in joint venture                                           |   |   | - |   |   |   | - |   |   |   | 139,782 |   |   |   | - |   |   |   | 139,782 |   |
| Write-off deferred expenses                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 233,960 |   |
| Forgiveness of accounts payable and accrued expenses                            |   |   | - |   |   |   | - |   |   |   | 49,145 |   |   |   |   |   |   |   | 49,145 |   |
| Interest expense                                                                |   |   | 2,803 |   |   |   | 13,299 |   |   |   | 21,212 |   |   |   | 26,172 |   |   |   | 60,756 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total expenses                                    |   |   | 726,084 |   |   |   | 269,169 |   |   |   | 1,534,698 |   |   |   | (1,364,447 | ) |   |   | 3,393,097 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net Loss                                          |   |   | (726,084 | ) |   |   | (269,169 | ) |   |   | (1,534,698 | ) |   |   | (1,364,447 | ) |   |   | (3,393,097 | ) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Net loss attributable to noncontrolling interest               |   |   | 1,521 |   |   |   | 17,669 |   |   |   | 10,183 |   |   |   | 31,607 |   |   |   | 79,084 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Net loss attributable to Rotate Black, Inc. |   | $ | (724,563 | ) |   | $ | (251,500 | ) |   | $ | (1,524,515 | ) |   | $ | (1,332,840 | ) |   | $ | (3,314,013 | ) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net loss per common share attributed to Rotate Black, Inc.    |   | $ | (0.01 | ) |   |   | * |   |   | $ | (0.02 | ) |   | $ | (0.03 | ) |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted average common shares outstanding                             |   |   | 77,051,647 |   |   |   | 63,718,757 |   |   |   | 72,647,315 |   |   |   | 45,284,304 |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| * Less than $0.01, per share                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| ROTATE BLACK, INC. AND SUBSIDIARY                                         |   |   |   |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|
| (A Development Stage Company)                                             |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) |   |   |   |   |
|                                                                                   |   |         |       |   |
|----------------------------------------------------------------------------------------|--------|--------------|------------|--------|
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   | Common Stock |       |   | Additional |   |   | Stock |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   | Number of    |       |   |   |   |   | Paid-in |   |   | Subscription |   |   | Accumulated |   |   |   |   |   | Noncontrolling |   |
|                                                                                   |   | Shares       |       |   | Amount |   |   | Capital |   |   | Receivable |   |   | Deficit |   |   | Total |   |   | Interest |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 2, 2006 - Stock subscription receivable                                         |   |         | 100        |   |   | $ | 1 |   |   | $ | 99 |   |   | $ | (100 | ) |   | $ | - |   |   | $ | - |   |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss - June 30, 2007                                                               |   |         | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,433 | ) |   |   | (3,433 | ) |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - June 30, 2007                                                                |   |         | 100        |   |   |   | 1 |   |   |   | 99 |   |   |   | (100 | ) |   |   | (3,433 | ) |   |   | (3,433 | ) |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss - June 30, 2008                                                               |   |         | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,755 | ) |   |   | (2,755 | ) |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - June 30, 2008                                                                |   |         | 100        |   |   |   | 1 |   |   |   | 99 |   |   |   | (100 | ) |   |   | (6,188 | ) |   |   | (6,188 | ) |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 15, 2008 - Common stock issued in connection with the acquisition of BevSystems |   |         | 1,000,000  |   |   |   | 10,000 |   |   |   | 47,009 |   |   |   | - |   |   |   | - |   |   |   | 57,009 |   |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 15, 2008 - Common stock issued in payment of due to stockholder                 |   |         | 8,999,900  |   |   |   | 89,999 |   |   |   | 422,980 |   |   |   | 100 |   |   |   | - |   |   |   | 513,079 |   |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 21, 2008 - Common stock issued in connection with employment agreements         |   |         | 8,300,000  |   |   |   | 83,000 |   |   |   | 390,100 |   |   |   | - |   |   |   | - |   |   |   | 473,100 |   |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 27, 2008 - Common stock issued in connection with services rendered             |   |         | 4,610,000  |   |   |   | 46,100 |   |   |   | 216,670 |   |   |   | - |   |   |   | - |   |   |   | 262,770 |   |   |   | - |   |
|                                                                                   |   |         |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| October 3, 2008 - Purchase of Rotate Black Gaming, Inc.                                |   |         | 26,560,000 |   |   |   | 265,600 |   |   |   | 3,331,444 |   |   |   | - |   |   |   | - |   |   |   | 3,597,044 |   |   |   | 1,199,015 |   |

| October 7, 2008 - Purchase of Dayton assets                                                |   |   | 5,480,900  |   |   |   | 54,809  |   |   |   | 164,345   |   |   |   | -      |   |   |   | -          |   |   |   | 219,154    |   |   |   | -         |   |
|--------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| October 7, 2008 - Purchase of interest in joint venture                                    |   |   | 8,400,000  |   |   |   | 84,000  |   |   |   | 52,121    |   |   |   | -      |   |   |   | -          |   |   |   | 136,121    |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November 16, 2008 - Common stock issued in connection with consulting agreement            |   |   | 100,000    |   |   |   | 1,000   |   |   |   | 4,700     |   |   |   | -      |   |   |   | -          |   |   |   | 5,700      |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November and December, 2008 - Common stock sold for cash                                   |   |   | 114,000    |   |   |   | 1,140   |   |   |   | 55,860    |   |   |   | -      |   |   |   | -          |   |   |   | 57,000     |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| December 23, 2008 - Common stock issued in payment of due to stockholder                   |   |   | 48,283     |   |   |   | 483     |   |   |   | 2,269     |   |   |   | -      |   |   |   | -          |   |   |   | 2,752      |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| January, February and March, 2009 - Common stock sold for cash                             |   |   | 285,000    |   |   |   | 2,850   |   |   |   | 282,150   |   |   |   | -      |   |   |   | -          |   |   |   | 285,000    |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| January 2, 2009 - Common stock issued in connection with consulting agreement              |   |   | 50,000     |   |   |   | 500     |   |   |   | 24,500    |   |   |   | -      |   |   |   | -          |   |   |   | 25,000     |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| May 11, 2009 - Common stock issued in   connection with land purchase  |   |   | 3,153,675  |   |   |   | 31,537  |   |   |   | 3,122,138 |   |   |   | -      |   |   |   | -          |   |   |   | 3,153,675  |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| April, May and June, 2009 - Common    stock sold for cash              |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| Net loss - June 30, 2009                                                                   |   |   | -          |   |   |   | -       |   |   |   | -         |   |   |   | -      |   |   |   | (1,783,310 | )      |   |   | (1,783,310 | )      |   | $      | (68,901   | )      |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| Balance at June 30, 2009                                                                   |   |   | 67,321,858 |   |   |   | 673,219 |   |   |   | 8,334,185 |   |   |   | -      |   |   |   | (1,789,498 | )      |   |   | 7,217,906  |   |   |   | 1,130,114 |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| September 15, 2009 - Common stock issued in connection with consulting agreement           |   |   | 75,000     |   |   |   | 750     |   |   |   | 74,250    |   |   |   | -      |   |   |   | -          |   |   |   | 75,000     |   |   |   | -         |   |
|                                                                                       |   |   |       |   |   |   |    |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |      |   |
| July, August and September, 2009 - Common stock sold for cash                              |   |   | 300,000    |   |   |   | 3,000   |   |   |   | 297,000   |   |   |   | -      |   |   |   | -          |   |   |   | 300,000    |   |   |   | -         |   |

|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|
| October 21, 2009 - Common stock issued for Shawanga land contract                                                                                    |   |   | 3,895,467  |   |   |   | 38,954  |   |   |   | 3,856,513  |   |   |   | -          |   |   |   | -          |   |   |   | 3,895,467  |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November 9, 2009 - Common stock issud for Shawanga land purchase anti-dilution rights                                                                |   |   | 350,000    |   |   |   | 3,500   |   |   |   | 346,500    |   |   |   | -          |   |   |   | -          |   |   |   | 350,000    |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November 9, 2009 - Common stock issued in connection for services                                                                                    |   |   | 100,000    |   |   |   | 1,000   |   |   |   | 99,000     |   |   |   | -          |   |   |   | -          |   |   |   | 100,000    |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November 9, 2009 - Common stock issued for settlement of note payable                                                                                |   |   | 660,000    |   |   |   | 6,600   |   |   |   | 323,400    |   |   |   | -          |   |   |   | -          |   |   |   | 330,000    |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November 9, 2009 - Common stock issued for payment on due to stockholder                                                                             |   |   | 1,500,000  |   |   |   | 15,000  |   |   |   | 1,485,000  |   |   |   | -          |   |   |   | -          |   |   |   | 1,500,000  |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| November 10, 2009 - Stock subscription receivable                                                                                                    |   |   | -          |   |   |   | -       |   |   |   | -          |   |   |   | (1,000,000 | )      |   |   | -          |   |   |   | (1,000,000 | )      |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| October, November and December, 2009 - Common stock sold for cash                                                                                    |   |   | 2,545,000  |   |   |   | 25,450  |   |   |   | 1,289,520  |   |   |   | -          |   |   |   | -          |   |   |   | 1,314,970  |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| December, 2009 - Collections of stock    subscriptions                                                                           |   |   | -          |   |   |   | -       |   |   |   | -          |   |   |   | 125,961    |   |   |   | -          |   |   |   | 125,961    |   |   |   | -         |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| January 19, 2010 - Common stock issued for payment on shareholder loan                                                                               |   |   | 125,000    |   |   |   | 1,250   |   |   |   | 61,250     |   |   |   | -          |   |   |   | -          |   |   |   | 62,500     |   |   |   |      |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| January, 2010 - Collections of stock   subscriptions                                                                                  |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| March 15, 2010 - Common stock issued for payment on shareholder loan                                                                                 |   |   | 100,000    |   |   |   | 1,000   |   |   |   | 49,000     |   |   |   | -          |   |   |   | -          |   |   |   | 50,000     |   |   |   |      |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| March 16, 2009 - Common stock issud for    Shawanga land purchase anti-dilution     rights    |   |   | 1,043,064  |   |   |   | 10,431  |   |   |   | 511,101    |   |   |   | -          |   |   |   | -          |   |   |   | 521,532    |   |   |   |      |   |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| Net loss - March 31, 2010                                                                                                                            |   |   | -          |   |   |   | -       |   |   |   | -          |   |   |   | -          |   |   |   | (1,524,515 | )      |   |   | (1,524,515 | )      |   |   | (10,183   | )      |
|                                                                                                                                                 |   |   |       |   |   |   |    |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |      |   |
| Balance at March 31, 2010 (Unaudited)                                                                                                                |   |   | 78,015,389 |   |   | $      | 780,154 |   |   | $      | 16,726,719 |   |   | $      | (801,039   | )      |   | $      | (3,314,013 | )      |   | $      | 13,391,821 |   |   | $      | 1,119,931 |   |

----

| ROTATE BLACK, INC. AND SUBSIDIARY                                                  |   |
|-----------------------------------------------------------------------------------------|--------|
| (A Development Stage Company)                                                           |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENT OF CASH FLOWS                                               |   |
| (UNAUDITED)                                                                             |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   | August 2, 2006 |   |
|                                                                                    |   | Nine Months Ended |   |   | (Inception) |   |
|                                                                                    |   | March 31, |   |   | Through |   |
|                                                                                    |   | 2010 |   |   | 2009 |   |   | March 31, 2010 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |
|  CASH FLOWS FROM OPERATING ACTIVITIES                                              |   |   |   |   |   |   |   |   |   |
|  Net loss                                                                          |   | $ | (1,524,515 | ) |   | $ | (1,332,840 | ) |   | $ | (3,314,013 | ) |
|  Adjustments to reconcile net loss to net cash                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|  used in operating activities:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|      Stock-based compensation                                  |   |   | 287,500 |   |   |   | 741,570 |   |   |   | 1,054,070 |   |
|      Write-off of investment in joint venture                  |   |   | 139,782 |   |   |   | - |   |   |   | 139,782 |   |
|      Loss on settlement of note payable                        |   |   | 473 |   |   |   | - |   |   |   | 473 |   |
|      Write-off of deferred expenses                            |   |   | - |   |   |   | - |   |   |   | 233,960 |   |
|      Depreciation and amortization                             |   |   | 16,381 |   |   |   | 11,421 |   |   |   | 32,877 |   |
|      Forgiveness of accounts payable and accrued expenses      |   |   | (49,145 | ) |   |   | - |   |   |   | (49,145 | ) |
|      Cancellation of shares to be issued                       |   |   | (32,138 | ) |   |   | - |   |   |   | (32,138 | ) |
|      Noncontrolling interest                                   |   |   | (10,183 | ) |   |   | (31,607 | ) |   |   | (79,084 | ) |
|  Changes in assets and liabilities:                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|      Prepaid expenses                                          |   |   | 1,270 |   |   |   | (29,249 | ) |   |   | 16,360 |   |
|      Unbilled development advances                             |   |   | (180,181 | ) |   |   | (485,618 | ) |   |   | (838,169 | ) |
|      Accounts payable and accrued expenses                     |   |   | 550,992 |   |   |   | 376,354 |   |   |   | 1,082,789 |   |
|      Deferred revenues                                         |   |   | 2,743 |   |   |   | 10,150 |   |   |   | 16,004 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net cash used in operating activities                                             |   |   | (797,021 | ) |   |   | (739,819 | ) |   |   | (1,736,234 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  CASH FLOWS FROM INVESTING ACTIVITIES                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|  Investment in BevSystems and increase in                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|       deferred acquisition costs (net of                  |   |   |   |   |   |   |   |   |   |   |   |   |
|       the issuance of common stock of $57,009             |   |   | - |   |   |   | (228,151 | ) |   |   | (317,256 | ) |
|  Purchases of fixed assets (net of note payable                                    |   |   | (3,867 | ) |   |   |   |   |   |   |   |   |
|       of $20,800 in 2008)                                 |   |   | - |   |   |   | (43,098 | ) |   |   | (48,742 | ) |
|      Security deposit                                          |   |   | - |   |   |   | (3,600 | ) |   |   | (3,600 | ) |
|      Investment in joint venture                               |   |   | - |   |   |   | - |   |   |   | (3,660 | ) |
|      Increase in deferred expenses                             |   |   | (407,980 | ) |   |   | (13,022 | ) |   |   | (422,786 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net cash used in investing activities                                             |   |   | (311,842 | ) |   |   | (287,871 | ) |   |   | (796,044 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  CASH FLOWS FROM FINANCING ACTIVITIES                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|      Increase (decrease) in loan payable - stockholder         |   |   | 411,470 |   |   |   | 749,295 |   |   |   | 1,181,292 |   |
|  Proceeds from sales of  common stock                                    |   |   | 813,931 |   |   |   | 342,000 |   |   |   | 1,375,931 |   |
|      Payment of note payable                                   |   |   | (25,000 | ) |   |   | - |   |   |   | (25,000 | ) |
|  Payments of note payable - truck                                                  |   |   | (3,964 | ) |   |   | (1,088 | ) |   |   | (6,923 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net cash provided by investing activities                                         |   |   | 1,096,437 |   |   |   | 1,090,207 |   |   |   | 2,535,300 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net increase (decrease) in cash                                                   |   |   | (12,431 | ) |   |   | 62,517 |   |   |   | 3,022 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash, beginning of period                                                         |   |   | 15,453 |   |   |   | - |   |   |   | - |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash, end of period                                                               |   | $ | 3,022 |   |   | $ | 62,517 |   |   | $ | 3,022 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Noncash Transaction                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|      Issuance of common stock in payment of due to stockholder |   | $ | 1,500,000 |   |   | $ | 513,079 |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|      Issuance of common stock in payment of note payable       |   | $ | 330,000 |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |

----

| Development advances                     |   | $      | 1,411,511  |   |
|------------------------------------------|--------|--------|------------|--------|
| Other current assets                     |   |   | 3,992      |   |
| Land                                     |   |   | 556,000    |   |
| Contract rights (a)                      |   |   | 5,767,884  |   |
| Accounts payable and accrued expenses    |   |   | (1,229,570 | )      |
| Loan payable – stockholder         |   |   | (1,411,941 | )      |
| Note payable                             |   |   | (268,000   | )      |
| Deferred revenue                         |   |   | (33,817    | )      |
|                                     |   |   | 4,796,059  |   |
| Less:  noncontrolling interest |   |   | (1,199,015 | )      |
|                                     |   | $      | 3,597,044  |   |

----

----

| Truck                         |   | $      | 39,761  |   |
|-------------------------------|--------|--------|---------|--------|
| Furniture and fixtures        |   |   | 8,490   |   |
| Office equipment              |   |   | 21,291  |   |
|                          |   |   | 69,542  |   |
| Less accumulated depreciation |   |   | (32,877 | )      |
|                          |   | $      | 36,655  |   |

----

----

| Total Assets                 |   | NONE   |     |
|------------------------------|--------|--------|----------|
|                         |   |   |     |
| Capital Contribution         |   | $      | 272,242  |   |
| Deficit                      |   |   | (272,242 | ) |
|                         |   |   |     |   |
| Total assets and liabilities |   | NONE   |     |

|  2010 |  $ |   3,835 |
|------------|---------|-------------------|
|  2011 |    | 5,541             |
|  2012 |    |  4,501       |
|       | $       |  13,877      |

----

| -   | nonrefundable retainer of $25,000, payable $10,000 upon execution and $15,000 upon completion of a term sheet, credited  against expenses due of the Offering; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | 6% of the maximum amount of any debt securities, including the face value of any committed line of credit, payable at closing; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------|

| -   |  a warrant to purchase common shares of the Company equal to 3% of(10 the number of shares issued in an equity financing  and (2) any maximum credit available in any debt obligation divided by the closing price of the Company's stock price on the day of closing, as defined. The warrant will be exercisable at the minimum exercise price of any warrants received by investors in the financing or, in the absence of any warrant issuance, the closing price for the common stock of the Company on the day of the closing for five years. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operation |
|--------------|--------------------------------------------------------------------------------------------|

----

----

----

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|--------------|------------------------------------------------------------|

| Item 4(T). |  Controls and Procedures |
|-----------------|-------------------------------|

----

----

| Exhibit No.:   |   | Exhibit                                                                                                                                                                       |
|-------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                          |   | Certification of Principal Executive Officer pursuant to Rule 13a-15(a) and Rule 15d-15(a), promulgated under the Securities Exchange Act of 1934, as amended.      |
|                          |   |                                                                                                                                                                          |
| 31.2                          |   | Certification of Principal Financial Officer pursuant to Rule 13a-15(a) and Rule 15d-15(a), promulgated under the Securities Exchange Act of 1934, as amended.      |
|                          |   |                                                                                                                                                                          |
| 32.1                          |   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C.Section 1350, as adopted pursuant to Section 302 of The Sarbanes-Oxley Act of 2002. |

----

|          |   | ROTATE BLACK, INC.(Registrant) |
|---------------|--------|--------------------------------|
|          |   |                           |
| May 18 , 2010 |   | By:                            |   | /s/ John Paulsen |
|          |   |                           |   | John Paulsen |
|          |   |                           |   | Chief Executive Officer(Authorized Officer, Principal Executive Officer and Principal Financial Officer) |

----