UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549  FORM 10-QSB  [ X ]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended September 30, 2007  OR  [   ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT 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)   Utah87-0340206(State or other jurisdictionI.R.S. Employerof incorporation or organization)Identification number  5455 Spine Road, Suite C, Boulder, Colorado 80301(Address of Principal Executive Offices)  Issuer's telephone number:     (303) 527-2903  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 last 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 [    ]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [   ]  No  [ X ].  As of November 12, 2007, the Registrant had 5,202,907 shares of its Common Stock outstanding.  Transitional Small Business Disclosure Format (check one)   Yes [   ]   No [ X ]  1   INDEX  PART I -- FINANCIAL INFORMATION  Item 1.Financial StatementsPageConsolidated Balance Sheet as of September 30, 2007 (unaudited)4Consolidated Statements of Operations for the three months ended
September 30, 2007 and September 30, 2006 (unaudited)5Consolidated Statements of Cash Flows for the three months ended
September 30, 2007 and September 30, 2006 (unaudited)6Notes to Consolidated Financial Statements (unaudited)7Item 2.Management's Discussion and Analysis of Financial Condition and Results of OperationsOverview12Results of Operations12Liquidity and Capital Resources16Item 3.Controls & Procedures19PART II - OTHER INFORMATIONItem 1.Legal Proceedings20Item 2.Unregistered Sale of Equity Securities and Use of Proceeds20Item 3.Defaults Upon Senior Securities20Item 4.Submission of Matters to a Vote of Security Holders20Item 5.Other Information20Item 6.Exhibits and Reports on Form 8-K20   2   PART 1.  FINANCIAL INFORMATION  Item 1. Financial Statements  The consolidated financial statements included herein have been prepared by Global Casinos, Inc. (the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such SEC rules and regulations.  In the opinion of management of the Company the accompanying statements contain all adjustments necessary to present fairly the financial position of the Company as of September 30, 2007, and its results of operations for the three month periods ended September 30, 2007 and 2006 and its cash flows for the three month periods ended September 30, 2007 and 2006.  The results for these interim periods are not necessarily indicative of the results for the entire year.  The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto filed as a part of the Company's annual report on Form 10-KSB.  3      GLOBAL CASINOS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETas of September 30, 2007 (Unaudited)ASSETSCurrent AssetsCash and cash equivalents$        1,666,181Accrued gaming income42,909Inventory7,410Other11,754Total current assets1,728,254Acquisition escrow deposit100,000Investment in Global Gaming Technologies67,846Land, building and improvements, and equipment:Land517,950Building and improvements4,110,685Equipment2,380,938Total land, building and improvements, and equipment7,009,573Accumulated depreciation(3,501,304)Land, building and improvements, and equipment, net3,508,269Total assets$      5,404,369LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable, trade$             23,766Accounts payable, related parties16,817Accrued expenses239,908Accrued interest3,852Joint venture obligation40,000Current portion of long-term debt56,128Other120,000Total current liabilities500,471Long-term debt, less current portion1,890,348Commitments and contingenciesStockholders' equity:Preferred stock: 10,000,000 shares authorizedSeries A - no dividends, $2.00 stated value, non-voting,2,000,000 shares authorized, 200,500 shares issued and outstanding401,000Series B - 8% cumulative, convertible, $10.00 stated value, non-voting,400,000 shares authorized, no shares issued and outstanding-Series C - 7% cumulative, convertible, $1.20 stated value, voting600,000 shares authorized, no shares issued and outstanding-Common stock - $0.05 par value; 50,000,000 shares authorized;5,202,907 shares issued and outstanding260,146Additional paid-in capital13,632,564Accumulated (deficit)(11,280,160)Total equity3,013,550Total liabilities and stockholders' equity$        5,404,369  4      GLOBAL CASINOS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONSfor the three months ended September 30, 2007 and 2006(Unaudited)20072006Revenues:Casino$    932,974$   1,063,404Promotional allowances$(38,307)(54,553)Net Revenues$    894,667$   1,008,851Expenses:Casino operations756,638763,676Operating, general, and administrative56,58564,528813,223828,204Income from operations81,444180,647Other income (expense):Interest expense(20,765)(25,094)Equity in earnings of Global Gaming Technologies(1,689)-Income before provision for income taxes58,990155,553Provision for income taxes--Net income (loss) attributible to common stockholders58,990155,553Earnings (loss) per common share:Basic$       0.01$          0.03Diluted$       0.01$          0.03Weighted average shares outstanding:Basic5,202,9075,152,907Diluted5,291,0025,284,775  5      GLOBAL CASINOS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSfor the three months ended September 30, 2007 and 2006(Unaudited)20072006CASH FLOWS FROM OPERATING ACTIVITIES:Net cash provided by operating activities$    141,754$       382,926CASH FLOWS FROM INVESTING ACTIVITIESPurchases of building improvements and equipment(14,076)(11,599)Payment on construction contract-(7,759)Investment in Global Gaming Technologies-(10,000)Net cash (used) by investing activities(14,076)(29,358)CASH FLOWS FROM FINANCING ACTIVITIESPrincipal payments on long-term debt(25,465)(59,250)Net cash (used) by financing activities(25,465)(59,250)Net increase in cash102,213294,318Cash at beginning of period1,563,9681,181,908Cash at end of period$ 1,666,181$    1,476,226SUPPLEMENTAL CASH FLOW INFORMATION:Cash paid for interest$     27,632$        27,564Cash paid for income taxes$              -$                -SUPPLEMENTAL SCHEDULE OF NON-CASH
INVESTING AND FINANCING ACTIVITIESEquipment financing obligations$      19,630$                   -  6     GLOBAL CASINOS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2007
(UNAUDITED)  1.        Organization and Consolidation  The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and Item 310(b) of Regulation S-B.  They do not include all of the information and footnotes required by GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included.  The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.  For further information, refer to the financial statements of the Company as of June 30, 2007, and for the two years then ended, including notes thereto included in the Companys Form 10-KSB.  Global Casinos, Inc. (the Company or Global), a Utah corporation, develops and operates gaming casinos.  The consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries.  All significant inter-company accounts and transactions have been eliminated in consolidation.  As of September 30, 2007, the Companys only operating subsidiary was CASINOS USA, INC. ("Casinos USA"), a Colorado corporation, which owns and operates the Bull Durham Saloon and Casino ("Bull Durham"), located in the limited stakes gaming district of Black Hawk, Colorado.  2.       Revenue Recognition  In accordance with gaming industry practice, we recognize casino revenues as the net win from gaming activities, which is the difference between gaming wins and losses.  Anticipated payouts resulting from our customer loyalty program (Sharpshooters Club), in which registered customers are awarded cash based on the frequency and amounts of their gaming activities are included in promotional allowances.  In accordance with gaming industry practice and EITF 00-22, these promotional allowances are presented as a reduction of casino revenues.  3.       Earnings per Common Share  Earnings per share ("EPS") are calculated in accordance with the provisions of Statement of Financial Accounting Standard No. 128, Earnings Per Share. SFAS No. 128 requires the Company to report both basic earnings per share, which is based on the weighted-average number of common shares outstanding, and diluted earnings per share, which is based on the weighted-average number of common shares outstanding plus all dilutive potential common shares outstanding, except where the effect of their inclusion would be anti-dilutive.  Potentially dilutive shares of 25,714 and 13,352 were not included in the calculation of diluted earnings per share for the three months ended September 30, 2007 and 2006, respectively, as their inclusion would have been anti-dilutive.  7      4.       Accrued Gaming Income  Gaming income represents the difference between the cash played by customers, and the cash paid out by the casino machines.  On a regular basis, the cash representing the casinos revenue is pulled from the machines and deposited. However, this process does not always occur at the end of the last business day of the month. Accrued gaming income represents the amount of revenue (cash) in the machines that has not yet been pulled and deposited at the end of the reporting period.  At September 30, 2007, $42,909 of income was accrued and recorded as a current asset.   5. Stock-Based Compensation  In 2006 we adopted the provisions of, and account for stock-based compensation in accordance with, the Financial Accounting Standards Boards (FASB) Statement of Financial Accounting Standards No. 123revised 2004 (SFAS 123R), Share-Based Payment which replaced` Statement of Financial Accounting Standards No. 123 (SFAS 123), Accounting for Stock-Based Compensation and supersedes APB Opinion No. 25 (APB 25), Accounting for Stock Issued to Employees. Under the fair value recognition provisions of this statement, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the period during which the holder is required to provide services in exchange for the award, i.e., the vesting period. We elected the modified-prospective method, under which prior periods are not revised for comparative purposes. The valuation provisions of SFAS 123R apply to new grants and to grants that were outstanding as of the effective date and are subsequently modified. Estimated compensation for grants that were outstanding as of the effective date will be recognized over the remaining service period using the compensation cost estimated for the SFAS 123 pro forma disclosures.  For the three months ended September 30, 2006 we recorded compensation expense of $20,652 under the requirements as discussed above.  No such expense was recorded for the three months ended September 30, 2007.   6.       Notes Payable and Long-Term Debt At September 30, 2007, notes payable and long-term debt consisted of the following:  Senior mortgages payable to an investment company, collateralized by real estate, interest at 7%, monthly payments of $6,768 through September 2009.  Final payment of $943,000.$     971,302Junior mortgages payable to private lenders, collateralized by real estate, interest at 4%, monthly payments of $5,054 through September 2009.  Final payment of $909,000955,544  8      Installment note payable to equipment supplier, requiring monthly payments of $3,272 plus interest at prime plus 3%, final payment due March 30, 2008.19,630Total notes payable and long-term debt1,946,476Less current portion(56,128)Long-term debt, net$  1,890,348   7.     Stockholders Equity  On January 5, 2007, the stockholders approved a proposal to adopt and approve a reverse split of up to a ratio of one-for-five of the issued and outstanding shares of our common stock, and issued and outstanding options, warrants and other rights convertible into shares of our common stock, all at the discretion of our Board of Directors to be implemented in the future as and when determined by our Board of Directors.  8.       Related Party Transactions  An officer and director operates a law firm that provides legal services to the Company.  During the three months ended September 30, 2007 and 2006, his billings to the Company totaled $21,575 and $21,905 respectively.  In 2006, the Company contracted an officer to provide management and accounting services to the Company.  During the three months ended September 30, 2007 and 2006, his billings to the company for services were $0 and $10,500, respectively.  9.       Commitments and Contingencies  Michael Jacobs vs. Global Casinos, Inc.  This matter was filed as a civil action, which has been stayed since 1998, pending mandatory arbitration.  There has been no action to prosecute the arbitration whatsoever and the matter has been dormant since 1998.  Mr. Jacobs was a former employee of the Company in Dallas, Texas and is asserting claims for compensation for services rendered while under the supervision of William P. Martindale at the Company's then existing Dallas, Texas office.  The Company believes that the likelihood of a material adverse outcome in this matter is remote.   9     Leases  Prior to January 2006, the Company leased approximately 4,200 square feet of space used as its corporate offices.  The lease required monthly payments of approximately $3,500.  A portion of the space was subleased for monthly rental income of approximately $2,500.  In January 2006, the lease with the landlord was terminated and assumed by Gunpark Asset Management, LLC (Gunpark), a company operated by the Companys former President and Director.  Concurrently, the Company entered into a Shared Services Agreement with Gunpark.  The agreement requires Gunpark provide sufficient office space to the Company, and requires the Company make monthly payments directly to the landlord of $3,000.  The monthly payment is allocated as $2,000 to rent expense, and $1,000 to clerical services.  The agreement expired on December 31, 2006 and was extended under the same terms to December 31, 2007 by mutual agreement.  At September 30, 2007 the minimum required payments through the remaining term of the Shared Services Agreement are $9,000.  10.       Income Taxes The Company and its subsidiaries are subject to income taxes on income arising in, or derived from, the tax jurisdictions in which they operate.  Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Deferred tax assets are comprised mainly of net operating loss carry-forwards.  The reconciliation between the statutory federal tax rate and the effective tax rate as a percentage is as follows:  20072006Statutory federal income tax rate34%34%Effect of net operating loss carry-forward(34)(34)-%-%  At September 30, 2007, the Company had net operating loss carry-forwards of approximately $5,672,000 available to reduce future taxable income.    10     11.     INVESTMENT IN GLOBAL GAMING TECHNOLOGIES  On February 28, 2006, the Company entered into an Organization Agreement with a certain individual to form a for-profit limited liability company under the name of Global Gaming Technologies, LLC (GGT).  Under the terms of the Agreement, the individual contributed to GGT all of his intellectual property rights related to two games of poker, which he individually developed.  The Company agreed to make an initial cash capital contribution to GGT of $100,000, for which it received a 25% equity interest in GGT.  At the Companys election, it may make an additional $100,000 cash capital contribution to GGT for which it will receive an additional 25% equity interest.  The initial cash contribution will be used to further develop the two games and to investigate possible patent protection.  At the present time, both games are still under development and neither has been approved for use in any gaming jurisdiction.  As of September 30, 2007, GGT had no revenues.  The investment is being accounted for under the equity method.  Its cash outlays have primarily been related to investigating patent protection for the products under development and for various product development and organizational start-up costs.  For the three months ended September 30, 2007 we have recorded $1,689 for various GGT product development expenditures.  Since February 2006, we have recorded $32,154, cumulatively, for various GGT start-up and product development costs  As of September 30, 2007, the Company has made cash payments to GGT of $60,000 as part of the initial $100,000 cash capital payments required under the Agreement.  The remaining $40,000 obligation was recorded as a current liability.  12.      ACQUISITION  Effective June 14, 2007, the Company entered into a definitive Asset Purchase and Sale Agreement (Agreement) with Doc Holliday Casino, LLC (Doc Holliday), a Colorado limited liability company to acquire substantially all of the tangible and intangible assets used in connection with the operation of Doc Holliday Casino, a limited stakes gaming casino located in Central City, Colorado.  The purchase price is $2.4 million, subject to adjustments, payable with a combination of cash, the assumption of certain liabilities and trade payables, and common stock.  Completion of the acquisition is subject to numerous material contingencies, including the need to complete an equity financing and debt financing, the need for regulatory approvals from the Colorado Division of Gaming and the Local Liquor Licensing Authority, the completion of audited historical financial statements of Doc Holliday Casino, as well as other conditions precedent customary to transactions of this nature.  On June 20, 2007, the Company deposited $100,000 to an escrow account as required by the Agreement.  The earnest money funds are part of the total purchase price per the Agreement.  It is anticipated Doc Holliday will incur audit and other financial costs associated with the acquisition.  The earnest money is to be paid to Doc Holliday as liquidated damages in the event the acquisition can not be consummated due to the Companys breach of the Agreement, or because of its inability to complete the necessary financing.    11      ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  Certain statements in this Management's Discussion and Analysis of Financial Condition and Results of Operations which are not historical facts are forward-looking statements such as statements relating to future operating results, existing and expected competition, financing and refinancing sources and availability and plans for future development or expansion activities and capital expenditures.  Such forward-looking statements involve a number of risks and uncertainties that may significantly affect our liquidity and results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements.  Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service financing and refinancing efforts, general economic conditions, changes in gaming laws or regulations (including the legalization of gaming in various jurisdictions) and risks related to development and construction activities.  The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report.  Overview  We operate in the domestic gaming industry.  We were organized as a holding company for the purpose of acquiring and operating casinos, gaming properties and other related interests. At March 31, 2007, our operations consisted solely of the Bull Durham Saloon & Casino in Black Hawk, Colorado.  Our operations are seasonal.  The Bull Durham experiences a significant increase in business during the summer tourist season.  We operate in a highly regulated environment subject to the political process.  Our retail gaming license is subject to annual renewal by the Colorado Division of Gaming.  Changes to existing statutes and regulations could have a negative effect on our operations.  Results of Operations - Three Months Ended September 30, 2007 Compared to the Three Months Ended September 30, 2006 We recognized net income of $58,990 ($0.01 per share) for the three months ended September 30, 2007 compared to net income of $155,553 ($0.03 per share) for the same period in 2006.  The reduction in our net income is primarily due to a decrease in customer traffic during the quarter.  Our decreases in gaming activity are reflective of the Black Hawk market as a whole and are primarily attributed to general economic conditions affecting the Black Hawk market, as well as continued construction activity in the area.  Revenues Casino revenues for the three months ended September 30, 2007 were $932,974 compared to $1,063,404 for the 2006 period, a decrease of $130,430 or 12.3%.  Our total coin-in was down by  12     4.4% for the three months ended September 30, 2007 over the comparable period in 2006 due to market conditions as discussed above, and we also experienced a slight 0.5% decrease in our hold percentage of approximately 0.5% for the three months ended September 30, 2007 over the three months ended September 30, 2006.  Promotional allowances include anticipated redemptions associated with our Sharpshooters Club which awards customers with cash payouts dependent upon the frequency and amount of their gaming activities on our slot machines.  The total allowances decreased $16,246 from $54,553 to $38,307 for the three months ended September 30, 2007 and 2006, respectively.  The primary reason for the decrease was due a change in our estimate of the expected redemption rates under the program during the quarter ended September 30, 2006.  Operating Expenses  Casino operations:  Includes all expenses associated with the operations of the Bull Durham Casino.  The following table summarizes such expenses for comparison and discussion purposes:  For the three months endedJune 30, 2007June 30, 2006$ VarianceLabor & Benefits305,736304,2811,455Marketing & Advertising125,402125,940(538)Depreciation & Amortization117,545120,972(3,427)Food & Beverage51,38558,593(7,208)Repair, Maintenance & Supplies35,84941,516(5,667)Device fees42,59233,6758,917Professional fees26,00023,5002,500Insurance, Taxes & Licenses20,92822,454(1,526)Utilities & Telephone18,34017,585755Other casino expenses12,86115,160(2,299)756,638763,676(7,038)  Labor & Benefits: Includes all salary and contract labor costs associated with the operations of the casino, payroll taxes, and costs associated with the casinos employee benefit and health insurance plans.  The slight 0.5% increase is primarily attributable to an 8.3% increase in our employee medical, dental and vision insurance plan attributable to the overall rising of health care costs.  Total labor and benefits costs as a percentage of casino revenues increased for the quarter from 28.6% to 32.8% for the three months ended September 30, 2007 and 2006, respectively, and are attributed to the decrease in revenues as discussed above.  Marketing & Advertising: Includes all costs associated with our advertising and marketing efforts including promotional activities designed to drive customers to our casino, and programs designed to foster customer loyalty.  The total marketing and advertising costs were essentially unchanged from the comparable quarter.   13     Depreciation & Amortization: Primarily includes depreciation on our gaming equipment, casino building improvements, furniture and fixtures, as well as amortization on our customer tracking software.  The slight decrease of $3,427 is primarily associated with several casino games that have fully depreciated.  During the quarter ended September 30, 2007 we added two new machines, and converted six machines to new games.  We are continuing efforts to upgrade and maintain the quality and appearance of the machines in order to provide the best customer experience possible.  Food & Beverage: Includes all costs associated with our bar and limited menu food services.  The $7,208 decrease from the comparable period in 2006 is primarily the result of the decreased customer traffic due to general economic conditions and construction as discussed above.  Repair, Maintenance & Supplies: Includes costs associated with the general upkeep of the facility, as well as parts and repair efforts to maintain the quality of our slot machines.  The decrease of $5,667 from the comparable period in 2006 is due to a decrease in purchasing of slot machine parts as our efforts to enhance the quality of the machines over the last year with the addition of several new machines and upgrades which has resulted in a more reliable slot machine population that has required less repair and maintenance.  Device Fees: Includes local fees paid to the city of Blackhawk based on the number of slot machines in operation.  Prior to calendar year 2007, the city of Blackhawk waived device fees on the first fifty slot machines operated by a casino.  In 2007, this waiver of fees was eliminated.  The increase of $8,917 for the quarter over quarter comparison is attributed to the elimination of this waiver.  Professional Fees: Includes all costs and fees associated with legal services, accounting and auditing services, and the Board of Directors of Casinos USA (d/b/a The Bull Durham Saloon & Casino).  The slight increase of $2,500 is primarily attributed to an increase in the accrual of expected audit fees.  Insurance, Taxes & Licenses: Includes all non-payroll taxes, liability and property insurance, and licenses associated with the operation of the casino.  For the three months ended September 30, 2007, there were no significant variances in costs within this category as compared to the three months ended September 30, 2006.  Utilities & Telephone: Include all costs associated with the casinos telephone system, cell phone usage, and utility costs.  For the three months ended September 30, 2007, there were no significant variances in costs within this category as compared to the three months ended September 30, 2006.  Other Casino Expenses: Includes all other costs of the casino operations not included in the above categories, including travel, postage, bad debts, parking allowances and lease costs associated with off-site storage.  For the three months ended September 30, 2007, there were no significant variances in costs within this category as compared to the three months ended September 30, 2006.  Operating, general, and administrative: Generally includes all expenses associated with the operations of the parent entity, Global Casinos, Inc., including legal services provided by the companys principal executive officer, and accounting services provided by the companys principal accounting officer, as well as clerical and bookkeeping services, corporate marketing efforts, and  14     stock-based compensation costs relating to the companys executive officers, directors, and subsidiary management.  For the three months ended September 30, 2007, total operating, general, and administrative costs were $56,585, as compared to $64,528 for the comparable three months ended September 30, 2006, a decrease of $7,943 or 12.3%, and is attributable to two factors.  First, as discussed elsewhere in this report  and in connection with our efforts to acquire the Doc Holliday casino in Central City, Colorado, we were required to pay $13,250 to the state of Colorado to begin the gaming license application process so as to not have a lapse in license should the acquisition be completed.  Secondly, during the quarter ended September 30, 2006 we recognized $20,652 of stock based compensation costs associated with the vesting of certain stock purchase options.  Other than these two items, there were no significant variances in operating, general, and administrative costs between the comparable periods.  We have adopted the provisions of, and account for stock-based compensation in accordance with, the Financial Accounting Standards Boards (FASB) Statement of Financial Accounting Standards No. 123revised 2004 (SFAS 123R), Share-Based Payment which replaced` Statement of Financial Accounting Standards No. 123 (SFAS 123), Accounting for Stock-Based Compensation and supersedes APB Opinion No. 25 (APB 25), Accounting for Stock Issued to Employees. Under the fair value recognition provisions of this statement, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the period during which the holder is required to provide services in exchange for the award, i.e., the vesting period.  Other than that noted above, neither period included any unusual items or significant fluctuations.  Interest expense  Interest expense was $20,765 for the three months ended September 30, 2007 compared to $25,094 for the comparable period in 2006, and represents regularly scheduled payments on various senior and junior mortgages collateralized by the Bull Durham Saloon and Casino real estate.  Monthly interest expense is expected to continue to decrease as the principal balances of our mortgage notes continue to decrease through normal debt service.  Other  On February 28, 2006, we entered into an Organization Agreement with a certain individual to form a for-profit limited liability company under the name of Global Gaming Technologies, LLC (GGT).  GGT was formed for the purpose of bringing to market two games of poker developed by the other party to the agreement, whose contribution included all of his intellectual property rights related to the two games which he developed.  At the present time, both games are still under development and neither has been approved for use in any gaming jurisdiction.  At this time GGT has no revenues.  The investment is being accounted for under the equity method.  Its cash outlays have primarily been related to investigating patent protection for the products under development and for various product development and organizational costs.  For the three months ended September 30, 2007 we have recorded $1,689 for various GGT organizational start-up and product development expenditures.  No costs associated with GGT activity were recognized for the quarter ended September 30, 2006.  15      For federal income tax purposes, Global has a net operating loss carryover (NOL) approximating $5,672,000, which can be used to offset future taxable income, if any.  Under the Tax Reform Act of 1986, the amounts of and the benefits from NOL's are subject to certain limitations including restrictions imposed when there is a loss of business continuity or when ownership changes in excess of 50% of outstanding shares, under certain circumstances.  Thus, there is no guarantee that Global will be able to utilize its NOL before it expires and no potential benefit has been recorded in the financial statements.  Inflation did not have a material impact on the Company's operations for the period.  Other than the foregoing, management knows of no trends, demands, or uncertainties that are reasonably likely to have a material impact on the Company's results of operations.  Liquidity and Capital Resources Our primary source of cash is internally generated through operations.  Historically, cash generated from operations has not been sufficient to satisfy working capital requirements and capital expenditures.  Consequently, we have depended on funds received through debt and equity financing to address these shortfalls.  We have also relied, from time to time, upon loans from affiliates to meet immediate cash demands.  There can be no assurance that these affiliates or other related parties will continue to provide funds to us in the future, as there is no legal obligation on these parties to provide such loans.  As of September 30, 2007, neither the Company nor its subsidiaries have commercial bank credit facilities.  Consequently, we believe that cash necessary for future operating needs must be internally generated though operations.  Cash flow at the Companys sole operating subsidiary has been sufficient to fund operations at that subsidiary and we believe that cash flow will be sufficient during the next twelve months to continue operation of the subsidiary.  At September 30, 2007, the Company had cash and cash equivalents of $1,666,181, substantially all of which was utilized in our casino operations.  Pursuant to state gaming regulations, the casino is required to maintain cash balances sufficient to pay potential jackpot awards.  Our cash balance at September 30, 2007 was in excess of funds required by gaming regulations.  Our working capital improved by $135,218 to $1,227,783 at September 30, 2007 from $1,092,565 at June 30, 2006, primarily because of cash flow from operating activities.  Cash provided by operating activities was $141,754 for the three months ended September 30, 2007.  For the same period in 2006, operating activities provided net cash of $382,926.  The decrease in cash provided by operating activities of $241,172 was primarily the result of the decrease in our net income resulting from the decreases in casino revenues as discussed above, non-cash stock based compensation costs incurred in 2006, as well as significant reductions in our accounts payable during the quarter ended September 30, 2007.   16     Cash used in investing activities was $14,076 for the three months ended September 30, 2007 and represents our cash purchases of gaming equipment.  Additional gaming equipment valued at $19,630 was acquired in a vendor financing arrangement which requires monthly payments of $3,272 plus interest at prime plus 3% through March 2008.  For the year ended June 30, 2008 we expect to spend approximately $200,000 in capital expenditures primarily to continue our efforts to upgrade and purchase new slot machines.  We expect much of this activity to continue to be short-term financed by our vendors under similar terms.  For the three months ended September 30, 2006, we used net cash of $29,358 in investing activities, which included $19,385 used for purchases of gaming equipment and building improvements, as well as $10,000 paid on the obligation regarding our investment in Global Gaming Technologies, LLC.  On February 28, 2006, we entered into an Organization Agreement with a certain individual to form a for-profit limited liability company under the name of Global Gaming Technologies, LLC (GGT).  GGT was formed for the purpose of bringing to market two games of poker developed by the other party to the agreement, whose contribution included all of his intellectual property rights related to the two games which he developed.  At the present time, both games are still under development and neither has been approved for use in any gaming jurisdiction.  Under the terms of the agreement we agreed to make an initial cash contribution to GGT of $100,000 in exchange for a 25% equity interest.  As of September 30, 2007, we had made total cash contributions totaling $60,000.  The balance due of $40,000 under the terms of the agreement has been recorded as a current liability.  The timing of the future cash payments required under the agreement is dependent upon the cash requirements of GGT to execute its business plan.  Also under the terms of the agreement, we have the option to make additional cash contribution of $100,000 in exchange for an additional 25% equity interest.  At this time GGT has no revenues.  The investment is being accounted for under the equity method.  Its cash outlays have primarily been related to investigating patent protection for the products under development and for various product development and organizational costs.  For the three months ended September 30, 2007 we have recorded $1,689 for various GGT product development expenditures.  Cash flows used in financing activities decreased $33,785 to $25,465 for the three months ended September 30, 2007, compared to cash used of $59,250 in 2006.  The amount for both the three months ended September 30, 2007 and 2006 represents principal payments on our mortgage debt and equipment financing obligations.  Off-Balance Sheet Arrangements  We do not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Securities and Exchange Commission regulation S-K.   17     Use of Estimates and Assumptions  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Significant estimates included herein relate to the recoverability of assets, the value of long-lived assets and liabilities, the value of share based compensation transactions, the long-term viability of the business, the future impact of gaming regulations, and future obligations under various tax statutes.  Actual results may differ from estimates.  Other than the foregoing, management knows of no trends, demands, or uncertainties that are reasonably likely to have a material impact on the Company's liquidity and capital resources.   18     ITEM 3.         CONTROLS AND PROCEDURES  The Company's Principal Executive Officer and Principal Financial Officer, have established and are currently maintaining disclosure controls and procedures for the Company.  The disclosure controls and procedures have been designed to provide reasonable assurance that the information required to be disclosed by the Company in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and to ensure that information required to be disclosed by the Company is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure.  The Principal Executive Officer and Principal Financial Officer conducted an update review and evaluation of the effectiveness of the Company's disclosure controls and procedures and have concluded, based on their evaluation as of the end of the period covered by this Report, that our disclosure controls and procedures are  effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive officer and our principal financial officer, to allow timely decisions regarding required disclosure and we refer you to Exchange Act Rule 13a-15(e).  In addition, our principal executive officer and principal financial officer have determined that there has occurred no change in our internal control over financial reporting occurred during or subsequent to the three month period ended September 30, 2006 that has materially affected, or is (as that term is defined in Rules 13(a)-15(f) and 15(d)-15(f) of the Securities Exchange Act of 1934) reasonably likely to materially affect, our internal control over financial reporting.   19      PART II.OTHER INFORMATIONItem 1.Legal ProceedingsNone, except as previously disclosed.Item 2.Unregistered Sales of Equity Securities and Use of ProceedsNone, except as previously disclosed.Item 3.Defaults Upon Senior SecuritiesNone, except as previously disclosed.Item 4.Submission of Matters to a Vote of Security HoldersNone, except as previously disclosed.Item 5.Other InformationNone, except as previously disclosed.Item 6.Exhibits and Reports on Form 8-KExhibits:31.Certification32.Certification Pursuant to 18 U.S.C. Section 1350Reports on Form 8-K:Current Report on Form 8-K, Items 2.02, 7.02, & 9.01, dated October 12, 2007 as filed with the Commission on October 12, 2007.     20     SIGNATURES  Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.  GLOBAL CASINOS, INC.Date: _November 13, 2007By: _/s/ Clifford L. Neuman_Clifford L. Neuman
President  GLOBAL CASINOS, INC.Date: November 13, 2007By: _/s/ Todd HussTodd Huss,
Chief Financial Officer     21