U. S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-QSB
(Mark One)
[ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934
               For the quarterly period ended September 30, 1996

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934
      For the transition period from               to
                                      ----------       ----------
                        Commission file number 0-15415

                             GLOBAL CASINOS, INC.
                             --------------------
       (Exact Name of Small Business Issuer as specified in its Charter)

      Utah                                               84-0340206
      ----                                               ----------
(State or other jurisdiction                          (I.R.S. Employer    
of incorporation or organization)                      Identification No.) 

       1777 South Harrison Street, The Skydeck, Denver, Colorado  80210
       ----------------------------------------------------------------
                   (Address of Principal Executive Offices)

                                (303) 756-3777
                                --------------
                          (Issuer's telephone number)
              --------------------------------------------------
             (Former name, former address and former fiscal year, 
                         if changed since last report)

Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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   
                                                                      ---   --
               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                 PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Check whether the Registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.      Yes         No        
                                                       -----      -----

As of October 24, 1996, 13,062,635 shares of Common Stock of the Issuer were
outstanding.

Transitional Small Business Disclosure Format   Yes / /    No /X/


<PAGE>

                                     INDEX

PART 1.  FINANCIAL INFORMATION:

   Item 1.  Financial Statements
            
            Balance Sheet at September 30, 1996 (unaudited) and June 30, 1996

            Statement of Operations for the Three Months Ended September 30,
            1996 (unaudited) and September 30, 1995 (unaudited)

            
            Statement of Cash Flow for the Three Months Ended September 30,
            1996 (unaudited) and September 30, 1995 (unaudited)

            Notes to Unaudited Financial STATEMENTS

   Item 2.  Management's Discussion and Analysis

PART II.  OTHER INFORMATION:  AMENDED AND RESTATED

   Item 1.  Legal Proceedings

   Item 2.  Changes in Securities

   Item 3.  Default Upon Senior Securities

   Item 4.  Submission of Matters to a Vote of Security Holders

   Item 5.  Other Information

   Item 6.  Exhibits and Reports on Form 8-K
<PAGE>
                        PART 1.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

     The accompanying Balance Sheet at September 30, 1996, Statement of
Operations for the Three Months Ended September 30, 1996 and September 30,
1995, and Statement of Cash Flows for the Three Months Ended September 30, 1996
and September 30, 1995 are unaudited but reflect all adjustments which are, in
the opinion of management, necessary to a fair statement of the financial
position and results of operations for the interim period presented.

<PAGE>
<TABLE>
                     GLOBAL CASINOS, INC. AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET

                              SEPTEMBER 30, 1996

<CAPTION>
                                          September 30,      June 30,
                                               1996           1996   
                                           (unaudited) 
                                          -------------     ---------
<S>                                        <C>            <C>        
ASSETS
Current assets:
  Cash                                     $ 1,119,885    $   887,374
  Receivables, related parties                  23,456         23,511
  Accounts receivable, net of
    allowance for doubtful 
    accounts of $5,500 at
    September 30, 1996 and $4,000
    at June 30, 1996                            74,906         73,884
  Prepaid expenses and other                    54,814         29,459
  Current portion of notes receivable           53,734         53,734
                                            ----------      ---------
Total current assets                         1,326,795      1,067,962

Note and interest receivable, subject to
  cancellation due to Chapter 11 Bankruptcy  1,217,588      1,217,588

Land, buildings and equipment:
  Land                                         531,715        531,715
  Buildings                                  3,913,510      3,913,510
  Equipment                                  2,043,348      1,998,414
                                            ----------     ----------
                                             6,488,573      6,443,639
  Accumulated depreciation                  (1,237,319)    (1,120,353)
                                            -----------    -----------
Net land, buildings and equipment            5,251,254      5,323,286

Other assets, net of amortization of 
  $31,752 at September 30, 1996 and 
  $31,002 at June 30, 1996                      95,603         62,841
Leasehold and contract rights, net of
  amortization of $804,949 at September 30,
  1996 and $714,124 at June 30, 1996         2,323,451      2,414,276
Notes receivable, net of current portion,
  including receivables in default             488,550        501,659
                                           -----------    -----------

Total assets                               $10,703,241    $10,587,612
                                           ===========    ===========


<PAGE>
<CAPTION>
                                         September 30,       June 30,
                                              1996            1996   
                                          (unaudited) 
                                         -------------      ---------
<S>                                        <C>            <C>        
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:                                                 
  Accounts payable, includes related
    party payables of $14,023 at
    September 30, 1996 and $143,245
    at June 30, 1996                       $   580,099    $   735,437
  Accrued expenses                           1,029,683        784,817
  Accrued interest                             304,497        231,775
  Notes payable, related parties               222,158         52,158
  Current portion of long-term debt
    including debt in default                  998,021        998,021
  Mandatory redeemable convertible 
    Class A preferred stock, in default         53,500         88,500
                                            ----------     ----------
Total current liabilities                    3,187,958      2,890,708

Liabilities subject to compromise            5,085,705      5,085,705
Long-term debt, less current portion            45,296         52,266
                                            ----------     ----------
Total liabilities                            8,318,959      8,028,679
                                            ----------     ----------
Minority interest                               48,514         17,969
                                            ----------     ----------
Commitments and Contingencies

Stockholders' equity:
  Class A preferred stock - Convertible
  nonvoting, $2 par value:
    Authorized - 10,000,000 shares
    Issued and outstanding - 681,000 shares
      at September 30, 1996, and 688,500
      shares at June 30, 1996               1,237,730       1,251,361
  Common stock - $.005 par value:
    Authorized - 50,000,000 shares
    Issued and outstanding - 13,062,635
      shares at September 30, 1996, and
      12,834,190 shares at June 30, 1996        65,638         64,494
  Additional paid-in capital                 7,944,220      7,819,454
  Accumulated deficit                       (6,911,820)    (6,594,345)
                                           -----------    ----------- 
Total stockholders' equity                   2,335,768      2,540,964
                                           -----------    -----------
Total liabilities and stockholders' 
  equity                                   $10,703,241    $10,587,612
                                           ===========    ===========

See accompanying notes.
</TABLE>

<PAGE>
<TABLE>
                     GLOBAL CASINOS, INC. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
                                     Three Months Ended September 30,
                                           1996            1995      
                                        (unaudited)     (unaudited)  
                                        -----------     -----------  
<S>                                      <C>            <C>       
Revenues:
  Casino                                 $1,707,811     $1,643,912
  Food and beverage                          89,201         57,913
  Other                                      28,328          4,596
                                         ----------     ----------
                                          1,825,340      1,706,421
                                          ---------     ----------
Expenses:
  Operating, general and 
    administrative                        1,788,836      1,571,812
  Depreciation                              116,966        106,370
  Amortization                               91,575         85,565
                                         ----------     ----------
                                          1,997,377      1,763,747
                                         ----------     ----------
Loss from operations                       (172,037)       (57,326)
                                         ----------     ---------- 
Other income (expense):
  Interest income                             6,598         28,655
  Interest expense (contractual
    interest of $125,962 (1996)
    and $157,905 (1995))                    (93,899)      (157,905)
                                         ----------     ---------- 
                                            (87,301)      (129,250)
                                         ----------     ---------- 
Loss before reorganization items
  and minority interest                    (259,338)      (186,576)

Reorganization items:
  Interest earned on accumulated cash
    resulting from Chapter 11
    proceedings                               2,936             - 
  Professional fees                          (6,200)            -  
                                         ----------     ---------- 
                                             (3,264)            -  

Loss before minority interest
  and extraordinary item                   (262,602)      (186,576)

Minority interest in (income)  
  of subsidiary                             (54,873)       (68,314)
                                         ----------     ---------- 

Net loss                                  $(317,475)     $(254,890)
                                         ==========     ========== 
Net loss per share                           $(0.02)        $(0.03)
                                         ==========     ========== 

Weighted average number
  of shares outstanding                  12,986,487      9,826,080
                                         ==========     ==========

See accompanying notes.
</TABLE>

<PAGE>
<TABLE>
                     GLOBAL CASINOS, INC. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOW
<CAPTION>
                                     Three Months Ended September 30,
                                           1996            1995      
                                        (unaudited)     (unaudited)  
                                        -----------     -----------  
<S>                                      <C>             <C>      
CASH FLOW FROM OPERATING ACTIVITIES

Net cash provided by (used in)
  operating activities                   $  163,863      $  10,609
                                         ----------      ---------
CASH FLOW FROM INVESTING ACTIVITIES
Other assets                                (32,012)        (1,571)
Purchase of equipment                       (46,933)       (34,035)
Proceeds from sale of equipment               1,999             - 
Collections on notes receivable              13,109         12,286
Distribution to minority interest           (30,545)            -  
                                         ----------      --------- 
Net cash used in investing activities       (94,382)       (23,320)
                                         ----------      --------- 
CASH FLOW FROM FINANCING ACTIVITIES
Principal payments on notes                  (6,970)       (71,536)
Borrowings against notes payable            170,000             - 
Proceeds from issuance of common stock           -         137,514
                                         ----------      ---------

Net cash provided by (used in) 
  financing activities                      163,030         65,978
                                         ----------      ---------
Net increase (decrease) in cash             232,511         53,267

Cash at beginning of year                   887,374        564,996
                                         ----------      ---------
Cash at end of year                      $1,119,885      $ 618,263
                                         ==========      =========
Supplemental cash flow information:
Cash paid for interest                   $    3,328      $ 135,295
                                         ==========      =========
Supplemental disclosure of non-cash investing and financing activities:

Debt converted to common stock:          $  112,279            -  
                                         ----------      ---------
                                         $  112,279            -  
                                         ==========      =========
Acquisition of additional interest in
  BPJ Holdings, N.V. and Casino Las
  Vegas in exchange for the Company's
  interest in Casino Lazurnaya:

  Assets and liabilities exchanged:
    Accounts receivable                          -       $ (55,753)
    Equipment, net                               -        (515,262)
Leasehold and contract rights                    -        (516,832)
Accrued expenses                                 -          17,388
Assets acquired and liability released:
Note receivable                                  -         200,000
Accounts payable                                 -          45,459
                                         ----------      ---------
Leasehold and contract rights                    -       $ 825,000
                                         ==========      =========
See accompanying notes.
</TABLE>

<PAGE>
                      GLOBAL CASINOS, INC. & SUBSIDIARIES
                Notes to the Consolidated Financial Statements
                              September 30, 1996
                                  (unaudited)

1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND MANAGEMENT'S PLANS

The accompanying financial statements have been prepared assuming that Global
Casinos, Inc. (the "Company") will continue as a going concern.  The Company
has recurring operating losses and a working capital deficiency.  In addition,
the Company is in default on substantially all of its loan agreements.  These
conditions raise substantial doubt about the Company's ability to continue as a
going concern.  The financial statements do not include any adjustments to
reflect the possible future effects on the recoverability and classification of
assets or the amounts and classification of liabilities that may result from
the outcome of these uncertainties.

Management is currently in the process of renegotiating its current debts in
order to extend the maturities, and Casinos U.S.A., Inc., a wholly-owned
subsidiary, has filed a voluntary petition under Chapter 11 of the United
States Bankruptcy Code to prevent the foreclosure of its Bull Durham property. 
Management believes that between anticipated improvements in casino operations
and debt restructuring, it will have the necessary capital to continue
operations.

ORGANIZATION AND CONSOLIDATION 

Global Casinos, Inc., a Utah corporation, develops and operates gaming casinos
domestically and internationally.  The consolidated financial statements of the
Company include the accounts of the following wholly-owned subsidiaries.  All
significant intercompany accounts and transactions have been eliminated in
consolidation.

    BPJ HOLDINGS N.V.("BPJ"), a Curacao Limited Liability Company, which
    operates the Casino Masquerade on the Caribbean resort island of Aruba.

    GLOBAL PELICAN N.V. ("Pelican"), a St. Maarten Limited Liability Company
    which operates the Pelican Casino located on the island of St. Maarten in
    the Netherland Antilles.   Pelican operates the casino under a month-to-
    month management agreement pending the execution of a formal Management and
    Operating Lease Agreement.

    CASINOS U.S.A., INC. ("Casinos U.S.A."), a Colorado corporation, which owns
    and operates the Bull Durham Saloon and Casino ("Bull Durham"), located in
    the limited stakes gaming district in Black Hawk, Colorado.

    GLOBAL CASINOS INTERNATIONAL, INC. ("Global International"), a Delaware
    corporation, which through July 15, 1995 owned an 80% interest in an
    International Joint Venture ("IJV") which held certain rights to develop
    and operate gaming casinos in several international locations.  Through the
    IJV, the Company opened Casino Lazurnaya in Sochi, Russia and Casino Las
    Vegas in Bishkek, Kyrgyzstan.  Effective July 15, 1995, the Company
    exchanged its interest in Global International and Casino Lazurnaya for an
    additional interest in BPJ and the Casino Las Vegas.  Through this
    transaction, the Company now owns 100% of BPJ and a 61% profits interest in
    the Casino Las Vegas.

    COLORADO GAMING PROPERTIES, INC. ("CGP"), a Colorado corporation, which
    through June, 1996, owned two non-operating real estate properties, the
    Nitro Club and Gas Light properties located in Central City, Colorado.

    LINCOLN CORPORATION ("Lincoln"), a South Dakota corporation, which operated
    the Last Chance Saloon ("Last Chance") in Deadwood, South Dakota under a
    lease agreement.  Last Chance was closed effective May 31, 1994, and the
    lease agreement was terminated.

    WOODBINE CORPORATION ("Woodbine"), a South Dakota corporation, which
    operated Lillie's Casino ("Lillie's") in Deadwood, South Dakota.  Lillie's
    was closed effective June 30, 1995.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly, they do not include all the information and
footnotes required by generally accepted accounting principles for complete
financial statements.  There has not been any significant change in the
Company's significant accounting policies nor has there been any significant
development in contingent liabilities and commitments.

In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.  The
results for these interim periods are not necessarily indicative of the results
for the entire year.  These statements should be read in conjunction with the
financial statements and footnotes thereto included in the Form 10-KSB for the
fiscal year ended June 30, 1996.

RECLASSIFICATIONS

Certain amounts reported in the 1995 interim financial statements have been
reclassified to conform to classifications in the 1996 interim financial
statements.

2.  BANKRUPTCY OF CASINOS U.S.A.

Casinos U.S.A. ("Debtor") is in default under all of its secured obligations
encumbering the Bull Durham.  The efforts of the Company to negotiate
restructured terms for the repayment of the secured obligations were
unsuccessful.  As a result, on October 18, 1995, Casinos U.S.A. filed a
voluntary petition under Chapter 11 of the United States Bankruptcy Code. 
Since October 18, 1995, Casinos U.S.A. has continued to operate the Bull Durham
as debtor-in-possession.  Under Chapter 11, claims against the Debtor in
existence prior to the Chapter 11 filing of the petition are stayed while the
Debtor formulates and obtains confirmation of a Plan of Reorganization.  These
claims are reflected in the June 30, 1996 and September 30, 1996 balance sheets
as "liabilities subject to compromise".  Additional claims (liabilities subject
to compromise) may arise subsequent to the filing date resulting from rejection
of executory contracts, including leases, and from the determination by the
court (or agreed to by parties in interest) of allowed claims for contingencies
and other disputed amounts.  Claims secured against the Debtor's assets
("secured claims") also are stayed, although the holders of such claims have
the right to move the court for relief from the stay.  Secured claims are
secured primarily by liens on the Debtor's property.  On September 4, 1996, the
Company filed its Second Amended Plan of Reorganization with the Bankruptcy
Court.  The Company has received Court approval on the Debtor's Corrected
Second Amended Disclosure Statement dated October 9, 1996.  The Court set a
hearing date of December 18, 1996 for confirmation of the Company's proposed
Plan of Reorganization.

The Plan of Reorganization as currently proposed calls for secured real estate
debt to be reduced from $4,064,720 to $2,120,000, after the cancellation of a
$1,107,896 note receivable due from one of the mortgage holders.  The
$2,120,000 will be comprised of a first mortgage of $1,012,874 bearing interest
at 7% and a second mortgage of $1,107,126 bearing interest at 9.2%.  The
mortgages shall be amortized over 30 years with balloon payments due seven
years after plan confirmation.  Secured equipment debt is $403,976 and the plan
as currently proposed calls for it to be reduced to $233,200, payable at the
interest rate of 10% with 35 monthly payments of $6,000 and one balloon payment
of unpaid principal and interest.  

The Debtor currently has $617,009 of unsecured debt.  The Plan of
Reorganization calls for unsecured debt to be reduced to $361,900, with a
payment of $227,000 upon confirmation of the plan and the remainder to be paid
in the form of notes over seven years with no interest.

If the current Plan of Reorganization is approved and confirmed without
significant revision, the Company would recognize an extraordinary gain on the
extinguishment of debt of approximately $1,300,000.  However, until the Plan of
Reorganization is approved and confirmed, there is no assurance that the
Company will be able to recognize such a gain. 

In August, 1996, the Debtor determined that there was insufficient collateral
to cover the interest portion of scheduled payments on pre-petition debt
obligations.  This determination was based on the Company's evaluation of the
future operations of the property and an independent appraisal of the property
in connection with preparing the Plan of Reorganization.  Contractual and
recorded interest on the Casinos U.S.A. obligations amounted to $97,427 for the
three (3) months ended September 30, 1995.  Contractual interest on the Casinos
U.S.A. obligations amounted to $85,613 for the three (3) months ended September
30, 1996.  Beginning in August, 1996, the Company began recording interest
expense only on the Casinos U.S.A. obligations expected to be paid under the
Plan of Reorganization and recorded interest of $53,550 for the three (3)
months ended September 30, 1996.

Condensed financial information for Casinos U.S.A. is as follows:
<TABLE>
                                         September 30,       June 30,
                                              1996            1996   
                                          (unaudited) 
                                         -------------      ---------
<S>                                        <C>             <C>       
BALANCE SHEET INFORMATION:
Current assets                             $  528,365      $  459,363
Net land, buildings and equipment           4,027,465       4,048,618
Note receivable, subject to 
  cancellation                              1,217,588       1,217,588
Intercompany receivables                      212,063         212,063
                                           ----------      ----------
Total assets                               $5,985,481      $5,937,632
                                           ==========      ==========
Accrued expenses, not subject to
  compromise, all current                  $   96,592      $   50,884
Liabilities subject to compromise:
  Secured claims                            4,941,248       4,941,248
  Unsecured priority and
  non-priority claims                         144,457         144,457
Intercompany liabilities                    1,368,148       1,368,148

Total liabilities                           6,550,445       6,504,737

Shareholder's deficit                        (564,964)       (567,105)
                                           ----------      ---------- 
                                           $5,985,481      $5,937,632
                                           ==========      ==========
OPERATING INFORMATION:
Net revenues                               $  633,671      $1,958,349
Total operating expenses                      526,523       1,712,996
                                           ----------      ----------
Income from operations                       107,148          245,353
Interest income                                    -           96,781
Interest expense                              (53,550)       (477,489)
Reorganization items                           (3,264)        (32,449)
                                           ----------      ---------- 
Net income (loss)                          $    2,141      $ (167,804)
                                           ==========      ========== 
</TABLE>
Intercompany receivables and liabilities are eliminated in consolidation at
June 30, 1996 and September 30, 1996.

At September 30, 1996, liabilities subject to compromise consist of the
following:
<TABLE>
<S>                                                        <C>       
  Mortgages payable to individuals, interest rates
    ranging from 7% to 10%, principal and interest
    payments payable monthly with maturities from
    1996 to 2001; the notes are collateralized by
    deeds of trust on real estate; in default              $3,257,170

  Notes to a partnership, interest at 15%; secured
    by a first deed of trust on real estate,
    originally due October 1994; in default                   672,549

  Notes bearing interest at 30%, collateralized by a 
    second deed of trust on real estate.  The 
    collateral of the notes are due 1999, in default          110,000

  Notes bearing interest at 7%, collateralized by 
    assignment of deed of trust on real estate,  
    notes are due 1999, in default                             25,000

  Capital lease obligations in default                        403,976

  Other liabilities subject to compromise
    consisting primarily of interest and 
    accounts payable and accrued expenses,
    of which $144,457 are unsecured                           617,010
                                                           ----------
                                                           $5,085,705
                                                           ==========
</TABLE>
3.  STOCKHOLDERS' EQUITY

During the three (3) months ended September 30, 1996, the Company issued
228,445 shares of Common Stock, converted 7,500 shares of Class A Preferred
Stock into 13,332 shares of Common Stock, and exchanged 215,113 shares of
Common Stock for debt reduction of $112,279.  


<PAGE>
           MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

     The following discussion and analysis should be read in conjunction with
the Financial Statements and Notes thereto appearing elsewhere in this
document.

LIQUIDITY AND CAPITAL RESOURCES - SEPTEMBER 30, 1996 COMPARED TO JUNE 30, 1996

     The Company is organized as a holding company for several entities holding
gaming-related properties.  The independent auditors' report on the Company's
June 30, 1996 consolidated financial statements contains an explanatory
paragraph that discusses certain conditions that raise substantial doubt about
the Company's ability to continue as a going concern.  The Company has
recurring operating losses and a working capital deficiency.  In addition, the
Company is in default on substantially all of its loan agreements, and Casinos
U.S.A. has filed a voluntary petition for protection under Chapter 11 of the
United States Bankruptcy Code.  These conditions raise substantial doubt about
the Company's ability to continue as a going concern.  Management is currently
in the process of renegotiating its current debts in order to extend the
maturities.  Also, the Company continually investigates opportunities to
undertake further financing.  If these efforts are successful, of which there
can be no assurance, management believes that it will have the necessary
capital to continue operations.

     The Company has experienced a significant decrease in working capital. 
The majority of this decline is due to the increase in the current portion of
long-term debt.  Substantially all of the Company's long-term debt is in
default and, as such, is classified as a current liability.

     Casinos U.S.A. ("Debtor") is currently in default under all of its secured
obligations encumbering the Bull Durham.  The efforts of the Company to
negotiate restructured terms for the repayment of the secured obligations were
unsuccessful.  As a result, on October 18, 1995, Casinos U.S.A. filed a
voluntary petition for protection under Chapter 11 of the United States
Bankruptcy Code.  Since October 18, 1995, Casinos U.S.A. has continued to
operate the Bull Durham as debtor-in-possession.  Under Chapter 11, certain
claims against the Debtor in existence prior to the filing of the Chapter 11
petition are stayed while the Debtor formulates and obtains confirmation of a
Plan of Reorganization.  These claims are reflected in the June 30, 1996, and
September 30, 1996, balance sheets as "liabilities subject to compromise". 
Additional claims (liabilities subject to compromise) may arise subsequent to
the filing date resulting from rejection of executory contracts, including
leases, and from the determination by the Bankruptcy Court (or agreed to by
parties in interest) of allowed claims for contingencies and other disputed
amounts.  Claims secured against the Debtor's assets ("secured claims") also
are stayed, although the holders of such claims have the right to move the
court for relief from the stay.  Secured claims are secured primarily by liens
on the Debtor's property.  On September 4, 1996 the Company filed its Second
Amended Plan of Reorganization with the Bankruptcy Court.  The Company received
Bankruptcy Court approval on the Debtor's Corrected Second Amended Disclosure
Statement on October 9, 1996.  The Court set a hearing date of December 18,
1996 for confirmation of the Company's proposed Plan of Reorganization.

     The Company is in the process of renegotiating its current debts in order
to extend the maturities.  Management believes that between anticipated
improvements in casino operating results and debt restructuring, the Company
will have the capital necessary to continue operations.

     The Company's balance sheet reflects an increase in current assets and
total assets, and an impairment in working capital.  Specifically, current
assets increased from $1,067,962 at June 30, 1996, to $1,326,795 at September
30, 1996, an increase of $258,833 or 24.2%.  At September 30, 1996, the Company
showed increases in cash of $232,511, or 26.2%, accounts receivable of $1,022,
or 1.3%, prepaid expenses and other of $25,355, or 86.1%.  These were offset by
decreases in receivables from related parties of $55.

     At September 30, 1996, the Company's investment in property, plant and
equipment increased slightly by $44,934, or 1.0%.  Other assets increased by
$32,762 or 52%.  Leasehold and contract rights decreased by $90,825 due to
amortization expense.

     Current liabilities increased 10.3% from $2,890,708 at June 30, 1996, to
$3,187,958 at September 30, 1996.  This is comprised of increases in accrued
expenses of $244,866, accrued interest of $72,722 and related parties notes
payable of $170,000.  These increases are offset by a reduction in accounts
payable of $155,338 and mandatory redeemable preferred stock of $35,000.

     As a result of the foregoing increases in current assets and in current
liabilities, the Company's working capital deficit increased from $(1,822,746)
on June 30, 1996, to $(1,861,163) on September 30, 1996, an increase of
$38,417, or 2.1%.  The current ratio decreased from (.37) to (.42).  The
Company continues to face a severe shortage of working capital, and there can
be no assurance that the Company will be able to raise the capital or show the
improvements in operations that would be necessary to overcome the deficit.

     During the three (3) months ended September 30, 1996, the Company was able
to negotiate the reduction of $112,279 of debt in exchange for 215,113 shares
of Common Stock in satisfaction of this debt.  During this period, the Company
reported a net loss of $(317,475).  As a result of the foregoing, stockholders'
equity decreased from $2,540,964 on June 30, 1996, to $2,335,768 on September
30, 1996, a decrease of $205,196, or 8.1%.

     Net cash used by investing activities for the three (3) months ended
September 30, 1995 was $(23,320).  This compares with net cash used by
investing activities of $(94,382) for the three (3) months ended September 30,
1996.  For the three (3) months ended September 30, 1995, the Company used
$34,035 for the purchase of equipment and $1,571 for additions to other assets. 
This compares to $46,933 for the purchase of equipment, $32,012 for acquisition
of other assets, and $30,546 in distribution to minority interest for the three
months ended September 30, 1996.  Offset against this, the Company received
$12,286 of principal payments on its notes receivable for the three (3) months
ended September 30, 1995. This compares with principal payments on its notes
receivable of $13,109 and proceeds from sale of equipment of $1,999 for the
three (3) months ended September 30, 1996.

     Net cash provided by financing activities for the three (3) months ended
September 30, 1995 was $65,978.  This compares with net cash provided by
financing activities of $163,030 for the three (3) months ended September 30,
1996.  Specifically, cash provided by financing activities for the three (3)
months ended September 30, 1995 was $137,514 realized from the exercise of
Common Stock Purchase Warrants and stock offerings.  Offset against the cash
provided by financing activities were promissory note principal reduction
payments in the amount of $71,536.  This compares to proceeds from borrowings
of $170,000 for the three (3) months ended September 30, 1996.  This was offset
by debt payments of $6,970.

     Neither the Company nor any of its subsidiaries have any commercial bank
credit facilities.

SUBSEQUENT EVENTS

     In October, 1996, the Company raised approximately $600,000 through an
offering of 600 Units ("Units"), each Unit consisting of one (1) eight percent
(8%) $1,000 Convertible Promissory Note ("Promissory Note"), 2,000 Class E
Common Stock Purchase Warrants ("E Warrants"), 2,000 Class F Common Stock
Purchase Warrants ("F Warrants"), and 2,000 Class G Common Stock Purchase
Warrants ("G Warrants").  The Promissory Note is convertible to common stock at
$0.50 per $1.00 loaned.  The Class E Warrants, F Warrants and G Warrants are
exercisable at $0.60, $0.70, and $0.80, respectively.


     Other than the foregoing, Management knows of no other trends, events or
uncertainties that have or are reasonably likely to have a material impact on
the Company's short-term or long-term liquidity.

RESULTS OF OPERATIONS - THREE (3) MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO
THE THREE (3) MONTHS ENDED SEPTEMBER 30, 1995

     For the three months ended September 30, 1995, the Company's income
consisted of revenues generated by the Bull Durham Saloon and Casino in Black
Hawk, Colorado, Casino Las Vegas in Bishkek, Kyrgyzstan, and Casino Masquerade
in Aruba.  Casino Lazurnaya in Sochi, Russia operated for the first 15 days of
July, 1995.  In contrast, Bull Durham, Casino Las Vegas and Casino Masquerade
operated for the same period in 1996.  The Company operated the Pelican Casino
in St. Maarten under a month-to-month operating agreement beginning in August,
1996.

     Net revenues for the three (3) months ended September 30, 1995 were
$1,706,421 based on casino revenues of $1,643,912, revenues from the sale of
food of $57,913, and other income of $4,596.  Net revenues for the three (3)
months ended September 30, 1996 were $1,825,340 comprised of casino revenues of
$1,707,811, food and beverage of $89,201, and other revenues of $28,328.  

     More specifically, net revenues at Casino Las Vegas and Casino Masquerade
decreased from $1,131,221 at September 30, 1995 to $896,536 at September 30,
1996.  It is believed this decrease is a result of increased competition in
these markets.  Net revenues in Sochi, Russia decreased from $24,485 at
September 30, 1995 due to the disposition of this property in July, 1995.  At
September 30, 1995, net revenues from domestic operations were $575,200
compared to net revenues from domestic operations at September 30, 1996 of
$613,671 from Bull Durham and $19,000 in other revenue from domestic
operations.  In addition, at September 30, 1996 the Company had net revenues of
$259,063 from the Pelican Casino.

     The foregoing changes in operations also resulted in an increase in
operating, general and administrative expenses which increased from $1,571,812
for the three (3) months ended September 30, 1995 to $1,788,836 for the three
(3) months ended September 30, 1996, an increase of 13.8% which is primarily
attributable to the Pelican Casino's added general and administrative expenses
of $330,000.  Depreciation increased 10.0% and amortization increased 7.0% over
the same period.

     Total operating expenses increased from $1,763,747 for the three (3)
months ended September 30, 1995, to $1,997,377 for the three months ended
September 30, 1996, an increase of 13%. 

     As a result of the increase in net revenues, and an increase in operating
expenses, losses from operations increased 200% to a loss of $(172,037) for the
three (3) months ended September 30, 1996, from a loss of $(57,326) for the
three (3) months ended September 30, 1995.  Interest income decreased 77% while
interest expense decreased 41% over the same period due to the Chapter 11
proceedings of Casinos U.S.A..  Losses before reorganization items and minority
interest increased 39% to a loss of $(259,338) for the three (3) months ended
June 30, 1996, from a loss of $(186,576) for the three (3) months ended June
30, 1995.

     For the three (3) months ended June 30, 1996, the Company had net expenses
from reorganization of $(3,264).  Due to a decrease in the operating results of
the Casino Las Vegas, the Company reported minority interest expense of
$(54,873) for the three (3) months ended September 30, 1996,  compared to a
minority interest expense of $(68,314) for the three (3) months ended September
30, 1995.

     As a result of the foregoing, the Company reported a net loss for the
three (3) months ended September 30, 1996 of ($317,475), an increase of 24.6%
from the loss for the three (3) months ended September 30, 1995 of $(254,890),
which translates into a net loss per share of $(0.02) based on 12,986,487
weighted average shares outstanding for the three (3) months ended June 30,
1996 and a net loss per share of $(0.03), based on 9,826,080 weighted average
shares outstanding for the three (3) months ended June 30, 1995.

     Other than the foregoing, management knows of no trends, or other demands,
commitments, events or uncertainties that will result in, or that are
reasonably likely to result in, a material impact on the income and expenses of
the Company.


                          PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     The Company is currently involved in the following pending legal
proceedings:

     1)  Astraea Investment Management, L. P., as Trustee vs. Global Casinos,
         --------------------------------------------------------------------
         Inc., et. al
         ------------
         Cause Number 94-02487 in the District Court of Dallas County, Texas,
         116th Judicial District.

           As previously reported, this matter had been brought by the holder
           of certain promissory notes made by the Company's wholly-owned
           subsidiary, Casinos U.S.A., Inc. ("Casinos U.S.A.") prior to its
           acquisition by the Company.  The notes held by the Plaintiff are
           secured by a senior deed of trust against the Bull Durham Saloon and
           Casino ("Bull Durham") located in Black Hawk, Colorado.  The Company
           had previously negotiated a settlement accord in which it guaranteed
           the obligation of Casinos U.S.A. and which resulted in a dismissal
           of the lawsuit.  However, the Company was unable to meet a balloon
           payment which was due on August 31, 1994.  As a result of that
           default, the Plaintiff filed a motion to reinstate the case in
           October, 1994.

           The Company admits making the promissory notes to the Plaintiff
           which has the approximate principal balance of $680,000, although
           the Company believes it may have some defenses and offsets.  The
           Company is in the process of attempting to renegotiate and
           restructure this indebtedness to amortize it within the parameters
           of projected future cash flow.  However, there can be no assurance
           that the creditors will agree to any such restructuring.  As of the
           date of this report, the matter is still pending and in the opinion
           of management there exists a high probability that if the matter
           goes to trial it will result in the entry of an adverse judgment
           against the Company for the full amount of the outstanding principal
           balance due on the note, accrued default interest, attorneys' fees
           and other costs of collection.  Such a judgment would have a
           material adverse impact upon the Company, its assets and operations.

     2)  Lisa Paige Montrose Promissory Note
         -----------------------------------
           Lisa Paige Montrose is the holder of a promissory note made by
           Casinos U.S.A. in the original principal amount of $2,546,260, which
           note was given in connection with the acquisition and purchase of
           the Bull Durham.  The obligation to repay the note is secured by a
           subordinated deed of trust against the Bull Durham.  The Company has
           been served notice by Ms. Montrose's legal representatives that she
           has construed the acquisition of Casinos U.S.A. by the Company in
           November, 1993 as a "transfer of control" under applicable
           provisions of her deed of trust which would grant her the right to
           accelerate the entire indebtedness represented by the promissory
           note.  The Company denies that Ms. Montrose has any basis in law or
           fact to accelerate the balance of the indebtedness, which the
           Company has been retiring in monthly installments paid in accordance
           with its terms.  No civil action has been filed in this matter.  If
           such an action is filed, the Company will vigorously defend. 

           In July, 1995, Ms. Montrose commenced a foreclosure proceeding
           against the Bull Durham by the Gilpin County Public Trustee.  Ms.
           Montrose was joined by Long & Jaudon, P.C., Richard C. Frajola,
           Francine M. Frajola, Marian Johnson, Mary E. Goodwin and Virginia G.
           Norris, all as beneficiaries of deeds of trust securing promissory
           notes in default.  The foreclosure sale was scheduled to take place
           October 19, 1995.  Negotiations to resolve the dispute and
           restructure the debt failed, and Casinos U.S.A. filed a voluntary
           petition under Chapter 11 of the United States Bankruptcy Code on
           October 19, 1995 ("Bankruptcy Proceeding").  As a result of the
           bankruptcy filing, the foreclosure proceeding and all other actions
           against Casinos U.S.A. have been stayed.  Casinos U.S.A. continues
           to operate the Bull Durham as debtor-in-possession. 

     3)  Angell & Deering v. Casinos, U.S.A., Inc. and Global Casinos, Inc.
         ------------------------------------------------------------------
         Case No. 95-CV-3289, in the Colorado District Court for the City and
         County of Denver.

           The Company and Casinos U.S.A. are named defendants in a civil
           action filed on July 20, 1995, in the Colorado District Court for
           the City and County of Denver.  The Plaintiff is claiming amounts
           due for breach of contract and quantum meruit based upon accounting
           services provided to Casinos U.S.A..  The Plaintiff seeks damages in
           the amount of $60,099 plus interest and attorney's fees.  The
           Company disputes its liability, and Casinos U.S.A. disputes the
           damages claimed.  The litigation is stayed as to Casinos U.S.A. due
           to the Bankruptcy Proceeding.  All parties have reached a
           conditional settlement whereby Casinos U.S.A. has agreed to an
           allowed unsecured claim for the plaintiff in the bankruptcy
           proceeding in the amount of $30,000.  The Company has purchased this
           claim in consideration for initial payment of $10,000 and a
           guarantee of future payments out of the proposed plan of
           reorganization totalling $20,000.  The lawsuit pending in the
           Colorado District Court would be dismissed with prejudice.  The
           entire settlement agreement is conditional upon the approval of the
           Bankruptcy Court which is pending.  Should the settlement agreement
           not be so approved, the plaintiff is likely to request a relief from
           stay from the Bankruptcy Court, and trial in the Colorado District
           Court would be rescheduled.

     4)  In Re Casinos U.S.A., Inc.
         --------------------------
         Case No. 95-20864 MSK, in the United States District Court for the
         District of Colorado.

           Casinos U.S.A. is currently in default under all of its secured
           obligations encumbering the Bull Durham.  Civil actions were
           initiated to foreclose upon the junior liens.  The efforts of the
           Company to negotiate restructured terms for the repayment of the
           foregoing secured obligations were unsuccessful.  As a result, on
           October 18, 1995, Casinos U.S.A. filed a voluntary petition under
           Chapter 11 of the United States Bankruptcy Code.  Since October 18,
           1995, Casinos U.S.A. has continued to operate the Bull Durham as
           debtor-in-possession.

           The Company believes that the approximate $4,700,000 in secured debt
           encumbering the Bull Durham property is substantially greater than
           the property's current fair market value.  As a result, there can be
           no assurance that the Company will be successful in achieving a plan
           of reorganization which will result in the Company's ability to
           continue to own and operate the Bull Durham.

     5)  Securities and Exchange Commission Investigation
         ------------------------------------------------

           During 1995 and 1996, the Company and certain officers and directors
           of the Company received requests for information from the U.S.
           Securities and Exchange Commission ("SEC") related to an
           investigation begun by the SEC during 1994 into various matters,
           including certain transactions in securities by the Company and one
           of its officers and directors.  As of September 30, 1996, neither
           management of the Company nor the Company's legal counsel have been
           informed of the results, if any, of the SEC's investigation or of
           any timetable for the SEC to complete its investigation.  There is
           no way to predict what, if any, effect the outcome of this matter
           will have on the financial position of the Company.

ITEM 2.  CHANGES IN SECURITIES

           None

ITEM 3.  DEFAULT UPON SENIOR SECURITIES

     Mandatory Redeemable Preferred Stock
     ------------------------------------

     In June, 1994, the Company issued 1,406,250 units comprised of one share
     of Series A Redeemable Convertible Preferred Stock with a mandatory
     redemption date of May 31, 1995 and one-half Class D Common Stock Purchase
     Warrant with an exercise price of $3.00 per share.  The redemption price
     of $2.00 per share is subject to adjustment for certain events such as
     splits and dividends.  Holders of the Redeemable Convertible Preferred
     Stock have the option to convert each share of the preferred stock into
     one share of the Company's Common Stock.  On May 31, 1995, holders of
     1,233,000 shares of the Company's Series A Preferred Stock agreed to waive
     the mandatory redemption in consideration of a lower conversion price,
     from $2,00 to $1.125 per share, approximately 1.778 shares of common stock
     for each share of preferred stock, and a reduction in the exercise price
     of 616,500 D Warrants from $3.00 per share to $.50 per share, if exercised
     on or before June 30, 1995, and $1.75 per share, if exercised after June
     30, 1995.  

     The foregoing modifications are applicable only to shares of Preferred
     Stock and D Warrants owned by holders who voluntarily agreed to such
     modifications.  In June, 1996, the holder of 125,000 shares of Mandatory
     Redeemable Preferred Stock in default agreed to convert the preferred
     shares into Common Stock at a conversion of $1.125 per share; provided,
     however, that the Company issue additional shares of Common Stock to
     reduce the conversion price to $1.00 per share depending upon the public
     trading price of the Common Stock over a 90-day period, and provided that
     the holder waive all interest accrued and accept no reduction in the
     exercise price of D Warrants.  At June 30, 1996, 44,250 shares of
     Mandatory Redeemable Convertible Preferred Stock remain outstanding, and
     the Company remains in default on its mandatory redemption obligation. 
     During the three (3) months ended September 30, 1996, 17,500 shares of
     Mandatory Redeemable Convertible Preferred Stock in default was converted
     into Common Stock.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
     No matters were submitted to a vote of security holders during the three
     months ended September 30, 1996.

ITEM 5.  OTHER INFORMATION
     None
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
     None

<PAGE>
                                  SIGNATURES
     
     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                   GLOBAL CASINOS, INC.



Dated:         10/12/96            By: /s/ Stephen G. Calandrella
           ----------------        ------------------------------
                                        Stephen G. Calandrella 
                                          Interim President



Dated:         10/12/96            By: /s/ Pete Bloomquist
           ----------------        ------------------------------    
                                        Pete Bloomquist
                                          Chief Financial Officer