<PAGE>
 
                                                                     EXHIBIT 4.4

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                               WARRANT AGREEMENT

                                BY AND BETWEEN

                             SILICON GAMING, INC.

                                      AND

                          THE PURCHASER NAMED HEREIN



                        DATED AS OF SEPTEMBER 30, 1997






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<PAGE>
 
                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
 
                                                                          PAGE
<S>             <C>                                                        <C>
 
ARTICLE I  WARRANT CERTIFICATES..........................................    1
  Section 1.1   Forms of Warrant Certificates............................    1
  Section 1.2   Execution of Warrant Certificates........................    1
  Section 1.3   Registration of Warrant Certificates.....................    2
  Section 1.4   Exchange and Transfer of Warrant Certificates............    2
  Section 1.5   Lost, Stolen, Mutilated or Destroyed Warrant Certificates    2
  Section 1.6   Cancellation of Warrant Certificates.....................    2
 
ARTICLE II  WARRANT EXERCISE PRICE AND EXERCISE OF WARRANTS..............    3
  Section 2.1   Exercise Price...........................................    3
  Section 2.2   Registration of Warrants and Warrant Shares..............    3
  Section 2.3   Procedure for Exercise of Warrants.......................    3
  Section 2.4   Issuance of Common Stock.................................    5
  Section 2.5   Certificates for Unexercised Warrants....................    5
  Section 2.6   Reservation of Shares....................................    5
  Section 2.7   No Impairment............................................    5
 
ARTICLE III  ADJUSTMENTS AND NOTICE PROVISIONS...........................    6
  Section 3.1   Adjustment of Exercise Price.............................    6
  Section 3.2   Sales of Certain Securities..............................    7
  Section 3.3   No Adjustments to Exercise Price.........................    9
  Section 3.4   Adjustment of Number of Shares...........................    9
  Section 3.5   Reorganizations..........................................    9
  Section 3.6   Verification of Computations.............................    9
  Section 3.7   Notice of Certain Actions................................   10
  Section 3.8   Certificate of Adjustments...............................   10
  Section 3.9   Warrant Certificate Amendments...........................   10
  Section 3.10  Fractional Shares........................................   11
 
ARTICLE IV  MISCELLANEOUS................................................   11
  Section 4.1   Payment of Taxes and Charges.............................   11
  Section 4.2   Changes to Agreement.....................................   11
  Section 4.3   Assignment...............................................   11
  Section 4.4   Successor to Company.....................................   12
  Section 4.5   Notices..................................................   12
  Section 4.6   Defects in Notice........................................   13
  Section 4.7   Governing Law............................................   13
  Section 4.8   Standing.................................................   13
  Section 4.9   Headings.................................................   13
  Section 4.10  Counterparts.............................................   13
  Section 4.11  Availability of the Agreement............................   13
</TABLE> 


                                      (i)
<PAGE>
 
<TABLE> 
<CAPTION> 
<S>             <C>                                                      <C>

  Section 4.12  Entire Agreement.........................................   13
 
WARRANT AGREEMENT COMPANY SIGNATURE PAGE.................................   14
 
WARRANT AGREEMENT PURCHASER SIGNATURE PAGE...............................   15
 
EXHIBIT A - FORM OF WARRANT CERTIFICATE..................................  A-1
</TABLE>





                                     (ii)
<PAGE>
 
                               WARRANT AGREEMENT


     THIS WARRANT AGREEMENT, dated as of September 30, 1997, is entered into by
and between Silicon Gaming, Inc., a California corporation (the "Company"), and
the undersigned purchaser (the "Purchaser").


                                  WITNESSETH:

     WHEREAS, the Company proposes to sell pursuant to a Securities Purchase
Agreement, dated as of September 30, 1997 (the "Securities Purchase Agreement"),
by and between the Company and the Purchaser, units consisting of Senior
Discount Notes in the aggregate principal amount of $30 million (as defined in
the Securities Purchase Agreement) and warrants (each, a "Warrant," and
collectively, the "Warrants") to purchase up to an aggregate of 375,000 shares
(subject to adjustment) of the common stock, par value $.001 per share, of the
Company (the "Common Stock") (the Common Stock issuable upon exercise of the
Warrants being referred to herein as the "Warrant Shares");

     NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:

                                   ARTICLE I
                             WARRANT CERTIFICATES

     Section 1.1  Forms of Warrant Certificates.  The warrant certificates (the
                  -----------------------------                                
"Warrant Certificates") shall be issued in registered form only and, together
with the form of the election to purchase (the "Election to Purchase"), and
assignment (the "Assignment") to be attached thereto, shall be substantially in
the form of Exhibit A attached hereto and, in addition, may have such letters,
            ---------                                                         
numbers or other marks of identification or designation and such legends,
summaries, or endorsements stamped, printed, lithographed or engraved thereon as
the Company may deem appropriate and as are not inconsistent with the provisions
of this Agreement, or as, in any particular case, may be required in the opinion
of counsel for the Company, to comply with any law or with any rule or
regulation of any regulatory authority or agency, or to conform to customary
usage.

     Section 1.2  Execution of Warrant Certificates.  The Warrant Certificates
                  ---------------------------------                           
shall be executed on behalf of the Company by its Chairman or President or any
Vice President and attested to by its Secretary or Assistant Secretary, either
manually or by facsimile signature printed thereon.  In case any authorized
officer of the Company who shall have signed any of the Warrant Certificates
shall cease to be an officer of the Company either before or after delivery
thereof by the Company to any Purchaser, the signature of such person on such
Warrant Certificates shall be valid nevertheless and such Warrant Certificates
may be issued and delivered to those persons entitled to receive the Warrants
represented thereby with the same force and effect as though the person who
signed such Warrant Certificates had not ceased to be an officer of the Company.
<PAGE>
 
     Section 1.3  Registration of Warrant Certificates.  The Company shall
                  ------------------------------------                    
number and register the Warrant Certificates in a register as they are needed.
The Company may deem and treat the registered holder(s) of the Warrant
Certificates (the "Holders") as the absolute owner(s) thereof for all purposes.

     Section 1.4  Exchange and Transfer of Warrant Certificates.  The Warrants
                  ---------------------------------------------               
(and any Warrant Shares issued upon exercise of the Warrants) shall bear such
restrictive legend or legends as may be required by the Securities Purchase
Agreement and as may be required by law and shall be transferable only in
accordance with the terms of this Agreement and the Securities Purchase
Agreement.

     The Company may from time to time register the transfer of any outstanding
Warrant Certificates in a warrant register to be maintained by the Company upon
surrender thereof accompanied by a written instrument or instruments of transfer
in form satisfactory to the Company duly executed by the Holder or Holders
thereof or by the duly appointed legal representative thereof or by a duly
authorized attorney.  Upon any such registration of transfer, a new Warrant
Certificate shall be issued to the transferee(s).

     Warrant Certificates may be exchanged at the option of the Holder(s)
thereof, when surrendered to the Company at the address set forth in Section 4.5
hereof for another Warrant Certificate or Warrant Certificates of like tenor and
representing in the aggregate a like number of Warrant Shares: provided that the
                                                               --------         
Company shall not be required to issue any Warrant Certificate representing any
fractional Warrant Shares.

     Section 1.5  Lost, Stolen, Mutilated or Destroyed Warrant Certificates.  If
                  ---------------------------------------------------------     
any Warrant Certificate shall be mutilated, lost, stolen or destroyed, the
Company shall issue, execute and deliver, in exchange and substitution for and
upon cancellation of a mutilated Warrant Certificate, or in lieu of or in
substitution for a lost, stolen or destroyed Warrant Certificate, a new Warrant
Certificate representing an equivalent number of Warrants or Warrant Shares.  If
required by the Company, the Holder of the mutilated, lost, stolen or destroyed
Warrant Certificate must provide indemnity sufficient to protect the Company
from any loss which it may suffer if the Warrant Certificate is replaced.  Any
such new Warrant Certificate shall constitute an original contractual obligation
of the Company, whether or not the allegedly lost, stolen, mutilated or
destroyed Warrant Certificate shall be at any time enforceable by anyone.

     Section 1.6  Cancellation of Warrant Certificates.  Any Warrant Certificate
                  ------------------------------------                          
surrendered upon the exercise of Warrants or for exchange or transfer, or
purchased or otherwise acquired by the Company, shall be canceled and shall not
be reissued by the Company; and, except as provided in Section 2.5 hereof in
case of the exercise of less than all of the Warrants evidenced by a Warrant
Certificate or in Section 1.4 in an exchange or transfer, no Warrant Certificate
shall be issued hereunder in lieu of such canceled Warrant Certificate.  Any
Warrant Certificate so canceled shall be destroyed by the Company.

                                       2
<PAGE>
 
                                  ARTICLE II
                WARRANT EXERCISE PRICE AND EXERCISE OF WARRANTS

     Section 2.1  Exercise Price.  Each Warrant Certificate shall, when signed
                  --------------                                              
by the Chairman or President or any Vice President and attested to by the
Secretary or Assistant Secretary of the Company, entitle the Holder thereof to
purchase from the Company, subject to the terms and conditions of this
Agreement, the number of fully paid and nonassessable Warrant Shares evidenced
thereby at a purchase price of $15.4375 per share (the "Initial Exercise Price")
or such adjusted number of Warrant Shares at such adjusted purchase price as may
be established from time to time pursuant to the provisions of Article III
hereof, payable in full in accordance with Section 2.3 hereof, at the time of
exercise of the Warrant.  Except as the context otherwise requires, the term
"Exercise Price" as used in this Agreement shall mean the purchase price of one
share of Common Stock, reflecting all appropriate adjustments made in accordance
with the provisions of Article III hereof.

     Section 2.2  Registration of Warrants and Warrant Shares.  The Company
                  -------------------------------------------              
shall secure the effective registration of the Warrant Shares for resale under
the Securities Act upon the terms and subject to the conditions set forth in the
Registration Rights Agreement dated as of the date hereof (the "Registration
Rights Agreement") between the Company and the Purchaser.  Promptly after a
registration statement under the Securities Act covering the Warrant Shares has
become effective, the Company shall cause notice thereof together with a copy of
the prospectus covering the Warrant Shares to be mailed to each registered
Holder.

     Section 2.3  Procedure for Exercise of Warrants.  The Warrants may be
                  ----------------------------------                      
exercised prior to the Expiration Date (as hereinafter defined) at the Exercise
Price at any time after (a) 6 months of the date hereof, (b) eleven (11)
business days following the commencement of a tender offer (as provided in Rule
14d-2 of the Exchange Act (as defined below)) with respect to the Common Stock
pursuant to Regulation 14D promulgated under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), unless the Company has published, sent or
given to securityholders pursuant to Rule 14e-2(a) under the Exchange Act a
statement that the Company recommends rejection of such tender offer (a
"Rejection Recommendation"), (c) after a Rejection Recommendation, if and upon
the public announcement by the Company, a filing by the Company with the
Securities and Exchange Commission, or the sending by the Company to
securityholders of a statement pursuant to Rule 14e-2(b) under the Exchange Act,
in each case, which changes the Company's position with respect to such tender
offer to a recommendation of acceptance of such tender offer or an expression of
no opinion with respect to such tender offer, (d) immediately prior to
consummation by the Company of any consolidation or merger with any entity
(other than a wholly-owned subsidiary of the Company) other than a consolidation
or merger as a result of which each of the stockholders of the Company owns,
immediately after consummation of such consolidation or merger, directly or
indirectly, at least 70% of the percentage of the fully diluted capital stock of
the Company or the surviving entity of such consolidation or merger which such
stockholder owned immediately prior to the consummation of such consolidation or
merger, calculated without giving effect to the issuance as part of such
consolidation or merger of up to 375,000 shares of Common Stock upon exercise of
the Warrants, or (e) the consummation by the Company of any sale, transfer or
other disposition of all or substantially all of its property, assets 

                                       3
<PAGE>
 
or business, other than to a wholly-owned subsidiary of the Company. The
Warrants shall expire at 5:00 p.m., New York City time, on September 30, 2002
(the "Expiration Date"). The Warrants may be exercised by surrendering the
Warrant Certificates representing such Warrants to the Company at its address
set forth in Section 4.5 hereof, together with the Election to Purchase duly
completed and executed, accompanied by payment in full, as set forth below, to
the Company of the Exercise Price for each Warrant Share in respect of which
such Warrants are being exercised. Such Exercise Price shall be paid in full by
(i) cash or a certified check or a wire transfer in same day funds in an amount
equal to the Exercise Price multiplied by the number of Warrant Shares then
being purchased or (ii) delivery to the Company of that number of shares of
Common Stock having a Fair Market Value (as hereinafter defined) equal to the
Exercise Price multiplied by the number of Warrant Shares then being purchased.
In the alternative, the Holder of a Warrant Certificate may exercise its right
to purchase some or all of the Warrant Shares subject to such Warrant
Certificate, on a net basis, such that, without the exchange of any funds, such
Holder receives that number of Warrant Shares subscribed to pursuant to such
Warrant Certificate less that number of shares of Common Stock having an
aggregate Fair Market Value at the time of exercise equal to the aggregate
Exercise Price that would otherwise have been paid by such Holder for the number
of Warrant Shares subscribed to pursuant to such Warrant Certificate
(hereinafter, a "Net Cashless Exercise").

     As used herein: (a) the term "Fair Market Value," on a per share basis,
means the average of the daily Closing Prices (as hereinafter defined) of the
Common Stock for the five (5) consecutive Trading Days (as hereinafter defined)
ending the Trading Day immediately preceding the Date of Exercise; (b) the term
"Date of Exercise" with respect to any Warrant means the date on which such
Warrant is exercised as provided herein; (c) the term "Closing Price" for any
date shall mean the last sale price reported in The Wall Street Journal regular
                                                -----------------------        
way or, in case no such reported sale takes place on such date, the average of
the last reported bid and asked prices regular way, in either case on the
principal national securities exchange on which the Common Stock is admitted to
trading or listed if that is the principal market for the Common Stock or, if
not listed or admitted to trading on any national securities exchange or if such
national securities exchange is not the principal market for the Common Stock,
the last sale price as reported on The Nasdaq Stock Market, Inc.'s National
Market ("Nasdaq") or its successor, if any, or if the Common Stock is not so
reported, the average of the reported bid and asked prices in the over-the-
counter market, as furnished by the National Quotation Bureau, Inc., or if such
firm is not then engaged in the business of reporting such prices, as furnished
by any similar firm then engaged in such business and selected by the Company
or, if there is no such firm, as furnished by any member of the National
Association of Securities Dealers, Inc. ("NASD") selected by the Company or, if
the Common Stock is not quoted in the over-the-counter market, the fair value
thereof determined in good faith by the Company's Board of Directors as of a
date which is within 15 days of the date as of which the determination is to be
made; and (d) the term "Trading Days" with respect to the Common Stock means (i)
if the Common Stock is quoted on Nasdaq or any similar system of automated
dissemination of quotations of securities prices, days on which trades may be
made on such system or (ii) if the Common Stock is listed or admitted for
trading on any national securities exchange, days on which such national
securities exchange is open for business.

                                       4
<PAGE>
 
     Section 2.4  Issuance of Common Stock.  As soon as practicable after the
                  ------------------------                                   
Date of Exercise of any Warrants, the Company shall issue, or cause its transfer
agent to issue, a certificate or certificates for the number of full Warrant
Shares, registered in accordance with the instructions set forth in the Election
to Purchase, together with cash for fractional shares as provided in Section
3.10.  All Warrant Shares issued upon the exercise of any Warrants shall be
validly authorized and issued, fully paid, non-assessable, free of preemptive
rights and (subject to Section 4.1 hereof) free from all taxes, liens, charges
and security interests in respect of the issuance thereof.  Each person in whose
name any such certificate for Warrant Shares is issued shall be deemed for all
purposes to have become the holder of record of the Common Stock represented
thereby on the Date of Exercise of the Warrants resulting in the issuance of
such shares, irrespective of the date of issuance or delivery of such
certificate for Warrant Shares.

     Section 2.5  Certificates for Unexercised Warrants.  In the event that,
                  -------------------------------------                     
prior to the Expiration Date, a Warrant Certificate is exercised in respect of
fewer than all of the Warrant Shares issuable on such exercise a new Warrant
Certificate representing the remaining Warrant Shares shall be issued and
delivered pursuant to the provisions hereof; provided that the Company shall not
                                             --------                           
be required to issue any Warrant Certificate representing any fractional Warrant
Shares.

     Section 2.6  Reservation of Shares.  The Company shall at all times
                  ---------------------                                 
reserve and keep available, free from preemptive rights, for issuance upon the
exercise of Warrants, the maximum number of its authorized but unissued shares
of Common Stock which may then be issuable upon the exercise in full of all
outstanding Warrants.  The Company shall from time to time take all action which
may be necessary or appropriate so that the Warrant Shares, immediately upon
their issuance following an exercise of Warrants, will be listed or quoted, as
the case may be, on the principal securities exchanges or markets within the
United States of America, if any, on which other shares of the Common Stock are
then listed.

     Section 2.7  No Impairment.  The Company shall not by any action,
                  -------------                                       
including, without limitation, amending its articles of incorporation or through
any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of the Warrants, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or appropriate to protect
the rights of the Holders against impairment.  Without limiting the generality
of the foregoing, the Company will (a) not increase the par value of any Warrant
Shares receivable upon the exercise of the Warrants above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and non-assessable Warrant
Shares upon the exercise of any Warrant, and (c) use its best efforts to obtain
all such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be necessary to enable the Company to perform
its obligations under the Warrants.  Notwithstanding the foregoing paragraph,
the Company shall not be required to issue Warrant Shares upon the exercise of
any Warrant if such issuance would result in a violation by the Company of any
applicable law.

                                       5
<PAGE>
 
                                  ARTICLE III
                       ADJUSTMENTS AND NOTICE PROVISIONS

     Section 3.1  Adjustment of Exercise Price.  Subject to the provisions of
                  ----------------------------                               
this Article III, the Exercise Price in effect from time to time shall be
subject to adjustment, as follows:

          (a) In case the Company shall (i) declare a dividend or make a
distribution on the outstanding shares of its Common Stock in shares of its
Common Stock, (ii) subdivide or reclassify the outstanding shares of its Common
Stock into a greater number of shares, or (iii) combine or reclassify the
outstanding shares of its Common Stock into a smaller number of shares, the
Exercise Price in effect immediately after the record date for such dividend or
distribution or the effective date of such subdivision, combination or
reclassification shall be adjusted so that it shall equal the price determined
by multiplying the Exercise Price in effect immediately prior thereto by a
fraction, of which the numerator shall be the number of shares of Common Stock
outstanding immediately before such dividend, distribution, subdivision,
combination or reclassification, and of which the denominator shall be the
number of shares of Common Stock outstanding immediately after such dividend,
distribution, subdivision, combination or reclassification.  Any shares of
Common Stock of the Company issuable in payment of a dividend shall be deemed to
have been issued immediately prior to the record date for such dividend for
purposes of calculating the number of outstanding shares of Common Stock of the
Company under Subsections 3.l(b), 3.l(c) and 3.2(a) hereof.  Such adjustment
shall be made successively whenever any event specified above shall occur.

          (b) In case the Company shall fix a record date for the issuance of
rights, options, warrants or convertible or exchangeable securities to all
holders of its Common Stock entitling them (for a period which, by its express
terms, expires within forty-five (45) days after such record date) to subscribe
for or purchase shares of its Common Stock at a price per share less than the
Current Market Price (as such term is defined in Subsection 3.1(d) hereof) of a
share of Common Stock of the Company on such record date, the Exercise Price
shall be adjusted immediately thereafter so that it shall equal the price
determined by multiplying the Exercise Price in effect immediately prior thereto
by a fraction, of which the numerator shall be the number of shares of Common
Stock outstanding on such record date plus the number of shares of Common Stock
which the aggregate offering price of the total number of shares of Common Stock
so offered would purchase at the Current Market Price per share, and of which
the denominator shall be the number of shares of Common Stock outstanding on
such record date plus the number of additional shares of Common Stock offered
for subscription or purchase.  Such adjustment shall be made successively
whenever such a record date is fixed.  To the extent that any such rights,
options, warrants or convertible or exchangeable securities are not so issued or
expire unexercised, the Exercise Price then in effect shall be readjusted to the
Exercise Price which would then be in effect if such unissued or unexercised
rights, options, warrants or convertible or exchangeable securities had not been
issuable.

          (c) In case the Company shall fix a record date for the making of a
distribution to all holders of shares of its Common Stock (i) of shares of any
class other than its Common Stock or (ii) of evidences of its indebtedness or
(iii) of assets (excluding cash dividends or 

                                       6
<PAGE>
 
distributions (other than extraordinary cash dividends or distributions), and
dividends or distributions referred to in Subsection 3.1(a) hereof) or (iv) of
rights, options, warrants or convertible or exchangeable securities (excluding
those rights, options, warrants convertible or exchangeable securities referred
to Subsection 3.1(b) hereof), then in each such case the Exercise Price in
effect immediately thereafter shall be determined by multiplying the Exercise
Price in effect immediately prior thereto by a fraction, of which the numerator
shall be the total number of shares of Common Stock outstanding on such record
date multiplied by the Current Market Price (as such term is defined in
Subsection 3.l(d) hereof) per share on such record date, less the aggregate fair
market value as determined in good faith by the Board of Directors of the
Company of said shares or evidences of indebtedness or assets or rights,
options, warrants or convertible or exchangeable securities so distributed, and
of which the denominator shall be the total number of shares of Common Stock
outstanding on such record date multiplied by such Current Market Price per
share. Such adjustment shall be made successively whenever such a record date is
fixed; provided, however, that in no event shall the exercise price be less than
zero. In the event that such distribution is not so made, or that such
distribution, by its express terms, is intended to be made, and is in fact made,
to all holders of Warrant Shares upon exercise of their respective Warrants, the
Exercise Price then in effect shall be readjusted to the Exercise Price which
would then be in effect if such record date had not been fixed.

          (d) For the purpose of any computation under Subsection 3.1(b) or
3.1(c) hereof, the "Current Market Price" per share at any date (the
"Computation Date") shall be deemed to be the average of the daily Closing
Prices of the Common Stock for the five (5) consecutive Trading Days ending the
Trading Day immediately preceding the Computation Date; provided, however, that
                                                        --------  -------      
if there shall have occurred prior to the Computation Date any event described
in Subsection 3.l(a), 3.l(b) or 3.1(c) which shall have become effective with
respect to market transactions at any time (the "Market-Effect Date") on or
within such 10-day period, the Closing Price for each Trading Day preceding the
Market-Effect Date shall be adjusted, for purposes of calculating such average,
by multiplying such Closing Price by a fraction, of which the numerator shall be
the Exercise Price as in effect immediately prior to the Computation Date and
the denominator of which shall be the Exercise Price as in effect immediately
prior to the Market-Effect Date, it being understood that the purpose of this
proviso is to ensure that the effect of such event on the market price of the
Common Stock shall, as nearly as possible, be eliminated in order that the
distortion in the calculation of the Current Market Price may be minimized.

     Section 3.2  Sales of Certain Securities.
                  --------------------------- 

          (a) In case the Company shall on or after the date hereof issue or
sell any shares of Common Stock or any rights, options, warrants or convertible
or exchangeable securities containing the right to subscribe for or purchase
shares of Common Stock (excluding Excluded Securities, as defined in Subsection
3.2(b) below) at a price per share less than the fair market value of the Common
Stock on the date of such issuance or sale, which value shall be either the
Current Market Price if the Common Stock is quoted on Nasdaq or listed or
admitted for trading on any national securities exchange, or the value
determined by the Board of Directors in good faith, on a reasonable basis, as
the case may be (which amount shall be subject to adjustment in the event of a
stock dividend, stock split or subdivision, combination or reclassification of
the 

                                       7
<PAGE>
 
Common Stock), then the Exercise Price shall be adjusted immediately thereafter
so that it shall equal the price determined by multiplying the Exercise Price in
effect immediately prior to such issuance or sale by a fraction, of which the
numerator shall be the number of shares of Common Stock outstanding immediately
prior to such issuance or sale (and shares issuable upon conversion of the
Company's Series A1 Preferred Stock and Series B1 Preferred Stock) plus the
number of additional shares of Common Stock the Aggregate Consideration
Receivable (as defined in Subsection 3.2(d) below) would purchase at the fair
market value per share on the date of such issuance or sale as determined above
(which amount shall be subject to adjustment in the event of a stock dividend,
stock split or subdivision, combination or reclassification of the Common
Stock), and of which the denominator shall be the number of shares of Common
Stock outstanding immediately prior to such issuance or sale (and shares
issuable upon conversion of the Company's Series A1 Preferred Stock and Series
B1 Preferred Stock) plus the number of additional shares of Common Stock offered
for subscription or purchase. Such adjustment shall be made successively
whenever such issuance or sale shall occur. To the extent that any such shares
of Common Stock are not so issued or sold or any such rights, options, warrants
or convertible or exchangeable securities are not so issued or sold or expire
unexercised, the Exercise Price then in effect shall be readjusted to the
Exercise Price which would then be in effect if such unissued or unsold shares
of Common Stock and such unissued or unsold or unexercised rights, options,
warrants or convertible or exchangeable securities had not been issuable.

          (b) "Excluded Securities" means (i) rights, options, warrants, or
convertible or exchangeable securities issued in any of the transactions
described in Subsections 3.l(b) or (c) or Section 3.5 hereof; (ii) shares of
Common Stock issuable upon exercise of the Warrants, and (iii) shares of Common
Stock issuable upon exercise of rights, options or warrants or conversion or
exchange of convertible or exchangeable securities issued or sold under
circumstances causing an adjustment pursuant to this Section 3.2.

          (c) The price per share of Common Stock referred to in Subsection
3.2(a) above shall be determined by dividing (i) the Aggregate Consideration
Receivable in respect of such rights, options, warrants or convertible or
exchangeable securities, by (ii) the total number of shares of Common Stock
covered by such rights, options, warrants or convertible or exchangeable
securities.

          (d) "Aggregate Consideration Receivable" means the aggregate amount
paid to the Company for such rights, options, warrants or convertible or
exchangeable securities, plus the aggregate consideration or premiums stated in
such rights, options, warrants or convertible or exchangeable securities to be
payable for the shares of Common Stock covered thereby.

          (e) In case the Company shall sell and issue rights, options, warrants
or convertible or exchangeable securities containing the right to subscribe for
or purchase shares of Common Stock, for a consideration consisting, in whole or
in part, of property other than cash or its equivalent, then in determining the
"price per share of Common Stock" referred to in Subsections 3.2(a) and (c)
above and the "Aggregate Consideration Receivable" referred to in Subsections
3.2(a), (c) and (d) above, the Board of Directors of the Company shall
determine, in good faith and on a reasonable basis, the fair value of said
property.

                                       8
<PAGE>
 
     Section 3.3  No Adjustments to Exercise Price.  No adjustment in the
                  --------------------------------                       
Exercise Price in accordance with the provisions of Subsection 3.1(a), (b) or
(c) or Subsection 3.2(a) hereof need be made unless such adjustment would amount
to a change of at least 0.5% in such Exercise Price, provided, however, that the
                                                     --------  -------          
amount by which any adjustment is not made by reason of the provisions of this
Section 3.3 shall be carried forward and taken into account at the time of any
subsequent adjustment in the Exercise Price.

     Section 3.4  Adjustment of Number of Shares.  Upon each adjustment of the
                  ------------------------------                              
Exercise Price pursuant to Subsection 3.l(a), (b) or (c) or Subsection 3.2(a)
hereof, each Warrant shall thereupon evidence the right to purchase that number
of Warrant Shares (calculated to the nearest hundredth of a share) obtained by
multiplying the number of Warrant Shares purchasable immediately prior to such
adjustment upon exercise of the Warrant by the Exercise Price in effect
immediately prior to such adjustment and dividing the product so obtained by the
Exercise Price in effect immediately after such adjustment.

     Section 3.5  Reorganizations.  In case of any capital reorganization,
                  ---------------                                         
other than in the cases referred to in Section 3.1 hereof, or the consolidation
or merger of the Company with or into another corporation (other than a merger
or consolidation in which the Company is the continuing corporation and which
does not result in any reclassification of the outstanding shares of Common
Stock or the conversion of such outstanding shares of Common Stock into shares
of other stock or other securities or property), or the sale or conveyance of
the property of the Company as an entirety or substantially as an entirety
(collectively such actions being hereinafter referred to as "Reorganizations"),
there shall thereafter be deliverable upon exercise of any Warrant (in lieu of
the number of Warrant Shares theretofore deliverable) the number of shares of
stock or other securities or property to which a holder of the number of Warrant
Shares which would otherwise have been deliverable upon the exercise of such
Warrant would have been entitled upon such Reorganization if such Warrant had
been exercised in full immediately prior to such Reorganization.  In case of any
Reorganization, appropriate adjustment, as determined in good faith by the Board
of Directors of the Company, shall be made in the application of the provisions
herein set forth with respect to the rights and interests of Holders so that the
provisions set forth herein shall thereafter be applicable, as nearly as
possible, in relation to any shares or other property thereafter deliverable
upon exercise of Warrants.  Any such adjustment shall be made by and set forth
in a supplemental agreement prepared by the Company or any successor thereto,
between the Company and any successor thereto, and shall for all purposes hereof
conclusively be deemed to be an appropriate adjustment.  The Company shall not
effect any such Reorganization, unless upon or prior to the consummation thereof
the successor corporation, or if the Company shall be the surviving corporation
in any such Reorganization and is not the issuer of the shares of stock or other
securities or property to be delivered to holders of shares of the Common Stock
outstanding at the effective time thereof, then such issuer, shall assume by
written instrument the obligation to deliver to the Holder of any Warrant
Certificate such shares of stock, securities, cash or other property as such
holder shall be entitled to purchase in accordance with the foregoing
provisions.

     Section 3.6  Verification of Computations.  The Company shall select a
                  ----------------------------                             
firm of independent public accountants (which may be its outside auditors),
which selection may be 

                                       9
<PAGE>
 
changed from time to time, to verify each computation and/or adjustment made in
accordance with this Article III. The certificate, report or other written
statement of any such firm shall be conclusive evidence of the correctness of
any computation made under this Article III. Promptly upon its receipt of such
certificate, report or statement from such firm of independent public
accountants, the Company shall deliver a copy thereof to each Holder.

     Section 3.7  Notice of Certain Actions.  In the event the Company shall
                  -------------------------                                 
(a) declare any dividend payable in stock to the holders of its Common Stock or
make any other distribution in property other than cash to the holders of its
Common Stock, (b) offer to the holders of its Common Stock rights to subscribe
for or purchase any shares of any class of stock or any other rights or options,
or (c) effect any reclassification of its Common Stock (other than a
reclassification involving merely the subdivision or combination of outstanding
shares of Common Stock) or any capital reorganization or any consolidation or
merger (other than a merger in which no distribution of securities or other
property is made to holders of Common Stock) or any sale, transfer or other
disposition of its property, assets and business substantially as an entirety,
or the liquidation, dissolution or winding up of the Company; then, in each such
case, the Company shall cause notice of such proposed action to be mailed to
each Holder at least thirty (30) days prior to such action; provided, however,
                                                            --------  ------- 
that in the event that the Company provides public notice of such action
specifying the information set forth below at least fifteen (15) days prior to
such action, the Company shall be deemed to have satisfied its obligation to
provide notice pursuant to this Section 3.7.  Such notice shall specify the date
on which the books of the Company shall close, or a record be taken, for
determining holders of Common Stock entitled to receive such stock dividend or
other distribution or such rights or options, or the date on which such
reclassification, reorganization, consolidation, merger, sale, transfer, other
disposition, liquidation, dissolution, winding up or exchange shall take place
or commence, as the case may be, and the date as of which it is expected that
holders of record of Common Stock shall be entitled to receive securities or
other property deliverable upon such action, if any such date has been fixed.
Such notice shall be mailed in the case of any action covered by paragraph (a)
or (b) of this Section 3.7, at least ten (10) days prior to the record date for
determining holders of the Common Stock for purposes of receiving such payment
or offer, and in the case of any action covered by this paragraph (c), at least
ten (10) days prior to the earlier of the date upon which such action is to take
place or any record date to determine holders of Common Stock entitled to
receive such securities or other property.

     Section 3.8  Certificate of Adjustments.  Whenever any adjustment is to
                  --------------------------                                
be made pursuant to this Article III, the Company shall prepare a certificate
executed by the Chief Financial Officer of the Company, setting forth such
adjustments to be mailed to each Holder at least fifteen (15) days prior
thereto, such notice to include in reasonable detail (a) the events
precipitating the adjustment, (b) the computation of any adjustments, and (c)
the Exercise Price and the number of shares or the securities or other property
purchasable upon exercise of each Warrant after giving effect to such
adjustment.  Such Certificate shall be accompanied by the accountant's
verification required by Section 3.6 hereof.


                                      10
<PAGE>
 
     Section 3.9  Warrant Certificate Amendments.  Irrespective of any
                  ------------------------------                      
adjustments pursuant to this Article III, Warrant Certificates theretofore or
thereafter issued need not be amended or replaced, but certificates thereafter
issued shall bear an appropriate legend or other notice of any adjustments;
provided the Company may, at its option, issue new Warrant Certificates
--------
evidencing Warrants in such form as may be approved by its Board of Directors to
reflect any adjustment in the Exercise Price and number of Warrant Shares
purchasable under the Warrants.

     Section 3.10  Fractional Shares.  The Company shall not be required upon
                   -----------------                                         
the exercise of any Warrant to issue fractional Warrant Shares which may result
from adjustments in accordance with this Article III to the Exercise Price or
number of Warrant Shares purchasable under each Warrant.  If more than one
Warrant is exercised at one time by the same Holder, the number of full Warrant
Shares which shall be issuable upon the exercise thereof shall be computed based
on the aggregate number of Warrant Shares purchasable upon exercise of such
Warrants.  With respect to any final fraction of a share called for upon the
exercise of any Warrant or Warrants, the Company shall pay an amount in cash to
the Holder of the Warrants in respect of such final fraction in an amount equal
to the Fair Market Value of a share of Common Stock as of the Date of Exercise
of such Warrants, multiplied by such fraction.  All calculations under this
Section 3.10 shall be made to the nearest hundredth of a share.

                                  ARTICLE IV
                                 MISCELLANEOUS

     Section 4.1  Payment of Taxes and Charges.  The Company will pay all taxes
                  ----------------------------                                 
(other than income taxes) and other government charges in connection with the
issuance or delivery of the Warrants and the initial issuance or delivery of
Warrant Shares upon the exercise of any Warrants and payment of the Exercise
Price.  The Company shall not, however, be required to pay any additional
transfer taxes in connection with the subsequent transfer of Warrants or any
transfer involved in the issuance and delivery of Warrant Shares in a name other
than the name in which the Warrants to which such issuance relates were
registered, and, if any such tax would otherwise be payable by the Company, no
such issuance or delivery shall be made unless and until the person requesting
such issuance has paid to the Company the amount of any such tax, or it is
established to the reasonable satisfaction of the Company that any such tax has
been paid.

     Section 4.2  Changes to Agreement.  The Company, when authorized by its
                  --------------------                                      
Board of Directors, with the written consent of Holders of at least a majority
of the outstanding Warrants may amend or supplement this Agreement.  The Company
may, without the consent or concurrence of any Holder, by supplemental agreement
or otherwise, make any changes or corrections in this Agreement that the Company
shall have been advised by counsel (a) are required to cure any ambiguity or to
correct any defective or inconsistent provision or clerical omission or mistake
or manifest error herein contained, (b) add to the covenants and agreements of
the Company in this Agreement such further covenants and agreements thereafter
to be observed, or (c) result in the surrender of any right or power reserved to
or conferred upon the Company in this Agreement, in each case which changes or
corrections do not and will not adversely affect, alter or change the rights,
privileges or immunities of the Holders.

                                      11
<PAGE>
 
     Section 4.3  Assignment.  All the covenants and provisions of this
                  ----------                                           
Agreement by or for the benefit of the Company or the Holders shall bind and
inure to the benefit of their respective successors and assigns.

     Section 4.4  Successor to Company.  In the event that the Company merges
                  --------------------                                       
or consolidates with or into any other corporation or sell or otherwise
transfers its property, assets and business substantially as an entirety to a
successor corporation, the Company shall use reasonable commercial efforts to
have such successor corporation assume each and every covenant and condition of
this Agreement to be performed and observed by the Company.

     Section 4.5  Notices.  Any notice or demand required by this Agreement to
                  -------                                                     
be given or made by any Holder to or on the Company shall be sufficiently given
or made if sent by first-class or registered mail, postage prepaid, addressed as
follows:

               Silicon Gaming, Inc.
               2800 W. Bayshore Road
               Palo Alto, California 94303
               Attn: Vice President--Chief Financial Officer

          With a copy to:

               Gray Cary Ware & Freidenrich,
               A Professional Corporation
               400 Hamilton Avenue
               Palo Alto, California 94301-1825
               Attn: James M. Koshland, Esq.

Any notice or demand required by this Agreement to be given or made by the
Company to or on any Holder shall be sufficiently given or made if sent by
first-class or registered mail, postage prepaid, addressed to such Holder and
sent to the following address:

               DDJ Capital Management, LLC
               141 Linden Street, Suite S-4
               Wellesley, MA 02181
               Attn: Wendy Schnipper Clayton, Esq.

          With a copy to:

               Goodwin, Procter & Hoar LLP
               Exchange Place
               Boston, MA 02109-2881
               Attn: Laura Hodges Taylor, P.C.

Any notice or demand required by this Agreement to be given or made by the
Company to or on any Holder shall be sufficiently given or made, whether or not
such holder receives the notice, 

                                      12
<PAGE>
 
five (5) days after mailing, if sent by first-class or registered mail, postage
prepaid, addressed to such Holder at its last address as shown on the books of
the Company. Otherwise, such notice or demand shall be deemed given when
received by the party entitled thereto.

     Section 4.6  Defects in Notice.  Failure to file any certificate or notice
                  -----------------                                            
or to mail any notice, or any defect in any certificate or notice pursuant to
this Agreement shall not affect in any way the rights of any Holder or the
legality or validity of any adjustment made pursuant to Section 3.1 or Section
3.2 hereof, or any transaction giving rise to any such adjustment, or the
legality or validity of any action taken or to be taken by the Company.

     Section 4.7  Governing Law.  This Agreement and each Warrant Certificate
                  -------------                                              
issued hereunder shall be governed by the laws of the State of New York without
regard to principles of conflicts of laws thereof.

     Section 4.8  Standing.  Nothing in this Agreement expressed and nothing
                  --------                                                  
that may be implied from any of the provisions hereof is intended, or shall be
construed, to confer upon, or give to, any person or corporation other than the
Company and the Holders of any right, remedy or claim under or by reason of this
Agreement or of any covenant, condition, stipulation, promise or agreement
contained herein; and all covenants, conditions, stipulations, promises and
agreements contained in this Agreement shall be for the sole and exclusive
benefit of the Company and its successors, and the Holders.

     Section 4.9  Headings.  The descriptive headings of the articles and
                  --------                                               
sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

     Section 4.10  Counterparts.  This Agreement may be executed in any number
                   ------------                                               
of counterparts, each of which so executed shall be deemed to be an original,
and all of which together shall constitute one and the same instrument.

     Section 4.11  Availability of the Agreement.  The Company shall keep
                   -----------------------------                         
copies of this Agreement available for inspection by Holders during normal
business hours.  Copies of this Agreement may be obtained upon written request
addressed to the Company at the address set forth in Section 4.5 hereof.

     Section 4.12  Entire Agreement.  This Agreement, including the Exhibits
                   ----------------                                         
referred to herein and the other writings specifically identified herein or
contemplated hereby, is complete, reflects the entire agreement of the parties
with respect to its subject matter, and supersedes all previous written or oral
negotiations, commitments and writings.


                                      13
<PAGE>
 
                               WARRANT AGREEMENT
                            COMPANY SIGNATURE PAGE

     IN WITNESS WHEREOF, this Warrant Agreement has been duly executed by the
parties as of the day and year first above written.

                              SILICON GAMING, INC.,
                                a California corporation


                              By:______________________________________________
                              Name:  Thomas E. Carlson
                              Title: Vice President and Chief Financial Officer
<PAGE>
 
                               WARRANT AGREEMENT
                           PURCHASER SIGNATURE PAGE

Accepted and Agreed as of the date first written above.


                              B III CAPITAL PARTNERS, L.P.,
                                a Delaware limited partnership

                              By:   DDJ CAPITAL III, LLC,
                                     its General Partner
                              By:   DDJ CAPITAL MANAGEMENT, LLC,
                                     its Manager


                              By:_________________________________
                              Name:
                              Title:


                              Notice Information:
                                    Mr. Jay Burnham
                                    DDJ Capital Management, LLC
                                    141 Linden Street, Suite S-4
                                    Wellesley, Massachusetts 02181
                                    Phone:  (617) 283-8500
                                    Fax: (617) 283-8555
<PAGE>
 
                    EXHIBIT A - FORM OF WARRANT CERTIFICATE

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, NOR PURSUANT TO THE SECURITIES OR "BLUE
SKY" LAWS OF ANY STATE.  SUCH SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED, EXCEPT PURSUANT TO (i) A
REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER
SUCH ACT, (ii) RULE 144 OR RULE 144A UNDER SUCH ACT, OR (iii) ANY OTHER
EXEMPTION FROM REGISTRATION UNDER SUCH ACT RELATING TO THE DISPOSITION OF
SECURITIES.  ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS
SUBJECT TO THE TERMS AND CONDITIONS CONTAINED IN A SECURITIES PURCHASE AGREEMENT
DATED AS OF SEPTEMBER 30, 1997, AS AMENDED FROM TIME TO TIME, A COMPLETE AND
CORRECT COPY OF THE FORM OF WHICH WILL BE FURNISHED BY THE ISSUER TO THE HOLDER
HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.  SUCH AGREEMENT, AMONG OTHER
THINGS, RESTRICTS THE DETACHMENT OF THE COMMON STOCK PURCHASE WARRANTS FROM THE
SENIOR DISCOUNT NOTE ATTACHED HERETO.

No. DDJ W-1

                       Certificate for 375,000 Warrants

                       NOT EXERCISABLE AFTER 5:00 P.M.,
                   NEW YORK CITY TIME, ON SEPTEMBER 30, 2002

                             SILICON GAMING, INC.

                   COMMON STOCK PURCHASE WARRANT CERTIFICATE

     THIS CERTIFIES that GOLDMAN, SACHS & COMPANY FFC: BIII CAPITAL PARTNERS,
L.P., a Delaware limited partnership, or its registered assigns is the
registered holder (the "Registered Holder") of Warrants set forth above, each of
which represents the right to purchase one fully paid and non-assessable share
of common stock, par value $.001 per share (the "Common Stock"), of Silicon
Gaming, Inc., a California corporation (the "Company"), at the Exercise Price
(as defined in the Warrant Agreement) at the times specified in the Warrant
Agreement, by surrendering this Warrant Certificate, with the form of Election
to Purchase attached hereto duly executed and by paying in full the Exercise
Price.  Payment of the Exercise Price shall be made as set forth in the Warrant
Agreement (as hereinafter defined).  No Warrant may be exercised after 5:00
P.M., New York City time, on September 30, 2002 (the "Expiration Date").  All
Warrants evidenced hereby shall thereafter become void, subject to the terms of
the Warrant Agreement hereinafter referred to.

     Prior to the Expiration Date, subject to any applicable laws, rules or
regulations restricting transferability and to any restriction on
transferability that may appear on this Warrant Certificate 

                                      A-1
<PAGE>
 
and in accordance with the terms of the Warrant Agreement hereinafter referred
to, the Registered Holder shall be entitled to transfer this Warrant
Certificate, in whole or in part, upon surrender of this Warrant Certificate at
the principal office of the Company with the form of assignment set forth hereon
duly executed. Upon any such transfer, a new Warrant Certificate or Warrant
Certificates representing the same aggregate number of Warrants to purchase the
shares of the Common Stock will be issued in accordance with instructions in the
form of assignment.

     Upon the exercise of less than all of the Warrants to purchase the shares
of the Common Stock evidenced by this Warrant Certificate, there shall be issued
to the Registered Holder a new Warrant Certificate in respect of the Warrants
not exercised.

     Prior to the Expiration Date, the Registered Holder shall be entitled to
exchange this Warrant Certificate, with or without other Warrant Certificates,
for another Warrant Certificate or Warrant Certificates for the same aggregate
number of Warrants to purchase the shares of the Common Stock, upon surrender of
this Warrant Certificate at the principal office of the Company.

     Upon certain events provided for in the Warrant Agreement, the Exercise
Price and the number of shares of Common Stock issuable upon the exercise of
each Warrant are required to be adjusted.

     No fractional shares will be issued upon the exercise of Warrants.  As to
any final fraction of a share of Common Stock which the Registered Holder of one
or more Warrant Certificates, the rights under which are exercised in the same
transaction, would otherwise be entitled to purchase upon such exercise, the
Company shall pay the cash value thereof determined as provided in the Warrant
Agreement.  No Warrant Certificate representing any fractional Warrant Shares
will be issued.

     This Warrant Certificate is issued under and in accordance with the Warrant
Agreement dated as of September 30, 1997 (the "Warrant Agreement") by and among
the Company and the Purchaser (as defined in the Warrant Agreement) and is
subject to the term and provisions contained in the Warrant Agreement.  All
capitalized terms not defined herein shall have the meanings given such terms as
set forth in the Warrant Agreement.

This Warrant Certificate shall not entitle the Registered Holder to any of the
rights of a stockholder of the Company, including, without limitation, the right
to vote, to receive dividends and other distributions, or to attend or receive
any notice of meetings of stockholders or any other proceedings of the Company.

                                      A-2
<PAGE>
 
     IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
duly executed under its facsimile corporate seal.

                    SILICON GAMING, INC.


                              By: ____________________________________
                              Name:
                              Title:

[Seal]                        Attest:


                              By:____________________________________
                              Name:
                              Title:  Secretary




                                      A-3
<PAGE>
 
                             [Form of Assignment]



     FOR VALUE RECEIVED, the undersigned hereby irrevocably sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned
represented by the within Warrant Certificate, with respect to the number of
Warrants to purchase the shares of the Common Stock set forth below:

<TABLE> 
<CAPTION> 
   
        NAME OF ASSIGNEE                ADDRESS                 NO. OF WARRANTS
        ----------------                -------                 ---------------
<S>                                     <C>                     <C>




</TABLE> 


and does hereby irrevocably constitute and appoint _____________________ true
and lawful Attorney, to make such transfer on the books of Silicon Gaming, Inc.,
maintained for that purpose, with full power of substitution in the premises.


Dated: __________ ___, _____            ________________________________________
                                        Signature


                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant Certificate.)





                                      A-4
<PAGE>
 
                        [Form of Election To Purchase]



     The undersigned hereby irrevocably elects to exercise ____________ of the
Warrants represented by this Warrant Certificate and to purchase the shares of
Common Stock issuable upon the exercise of said Warrants, and requests that
certificates for such shares be issued and delivered as follows:

ISSUE TO:_______________________________________________________________________
                                     (NAME)


________________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)


________________________________________________________________________________
                (SOCIAL SECURITY OR OTHER IDENTIFICATION NUMBER)


DELIVER TO:_____________________________________________________________________
                                     (NAME)


at______________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)

     In full payment of the purchase price with respect to the exercise of
Warrants to purchase shares of the Common Stock, the undersigned:

     [_]  hereby tenders payment of $________ by cash, certified check,
          cashier's check or money order payable in United States currency to
          the order of the Company; or

     [_]  hereby delivers to the Company that number of shares of Common Stock
          having a Fair Market Value (as defined in the Warrant Agreement) equal
          to the Exercise Price multiplied by the number of Warrant Shares being
          purchased; or

     [_]  hereby makes a Net Cashless Exercise (as defined in the Warrant
          Agreement).

     If the number of Warrants to purchase the shares of the Common Stock hereby
exercised is less than all the Warrants represented by this Warrant Certificate,
the undersigned requests that a new Warrant Certificate representing the number
of such full Warrants not exercised be issued and delivered as follows:



                                      A-5
<PAGE>
 
ISSUE TO:_______________________________________________________________________
                                     (NAME)


________________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)


________________________________________________________________________________
                 (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)


DELIVER TO:_____________________________________________________________________
                                     (NAME)


at______________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)



Date: __________ ___, ______            ________________________________________
                                        Signature

                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant Certificate.)

                                        PLEASE INSERT SOCIAL SECURITY OR TAX
                                        I.D. NUMBER OF HOLDER

 
                                        ________________________________________







                                      A-6
<PAGE>
 
                                                               CUSIP 827054 11 5

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, NOR PURSUANT TO THE SECURITIES OR "BLUE
SKY" LAWS OF ANY STATE. SUCH SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED, EXCEPT PURSUANT TO (i) A
REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER
SUCH ACT, (ii) RULE 144 OR RULE 144A UNDER SUCH ACT, OR (iii) ANY OTHER
EXEMPTION FROM REGISTRATION UNDER SUCH ACT RELATING TO THE DISPOSITION OF
SECURITIES. ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS
SUBJECT TO THE TERMS AND CONDITIONS CONTAINED IN A SECURITIES PURCHASE AGREEMENT
DATED AS OF SEPTEMBER 30, 1997, AS AMENDED FROM TIME TO TIME, A COMPLETE AND
CORRECT COPY OF THE FORM OF WHICH WILL BE FURNISHED BY THE ISSUER TO THE HOLDER
HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE. SUCH AGREEMENT, AMONG OTHER
THINGS, RESTRICTS THE DETACHMENT OF THE COMMON STOCK PURCHASE WARRANTS FROM THE
SENIOR DISCOUNT NOTE ATTACHED HERETO.

No. DDJ W-1

                       Certificate for 375,000 Warrants

                       NOT EXERCISABLE AFTER 5:00 P.M.,
                   NEW YORK CITY TIME, ON SEPTEMBER 30, 2002

                             SILICON GAMING, INC.

                   COMMON STOCK PURCHASE WARRANT CERTIFICATE

     THIS CERTIFIES that GOLDMAN, SACHS & COMPANY FFC: BIII CAPITAL PARTNERS,
L.P., a Delaware limited partnership, or its registered assigns is the
registered holder (the "Registered Holder") of Warrants set forth above, each of
which represents the right to purchase one fully paid and non-assessable share
of common stock, par value $.001 per share (the "Common Stock"), of Silicon
Gaming, Inc., a California corporation (the "Company"), at the Exercise Price
(as defined in the Warrant Agreement) at the times specified in the Warrant
Agreement, by surrendering this Warrant Certificate, with the form of Election
to Purchase attached hereto duly executed and by paying in full the Exercise
Price.  Payment of the Exercise Price shall be made as set forth in the Warrant
Agreement (as hereinafter defined).  No Warrant may be exercised after 5:00
P.M., New York City time, on September 30, 2002 (the "Expiration Date").  All
Warrants evidenced hereby shall thereafter become void, subject to the terms of
the Warrant Agreement hereinafter referred to.

     Prior to the Expiration Date, subject to any applicable laws, rules or
regulations restricting transferability and to any restriction on
transferability that may appear on this Warrant Certificate 
<PAGE>
 
                                                               CUSIP 827054 11 5


and in accordance with the terms of the Warrant Agreement hereinafter referred
to, the Registered Holder shall be entitled to transfer this Warrant
Certificate, in whole or in part, upon surrender of this Warrant Certificate at
the principal office of the Company with the form of assignment set forth hereon
duly executed. Upon any such transfer, a new Warrant Certificate or Warrant
Certificates representing the same aggregate number of Warrants to purchase the
shares of the Common Stock will be issued in accordance with instructions in the
form of assignment.

     Upon the exercise of less than all of the Warrants to purchase the shares
of the Common Stock evidenced by this Warrant Certificate, there shall be issued
to the Registered Holder a new Warrant Certificate in respect of the Warrants
not exercised.

     Prior to the Expiration Date, the Registered Holder shall be entitled to
exchange this Warrant Certificate, with or without other Warrant Certificates,
for another Warrant Certificate or Warrant Certificates for the same aggregate
number of Warrants to purchase the shares of the Common Stock, upon surrender of
this Warrant Certificate at the principal office of the Company.

     Upon certain events provided for in the Warrant Agreement, the Exercise
Price and the number of shares of Common Stock issuable upon the exercise of
each Warrant are required to be adjusted.

     No fractional shares will be issued upon the exercise of Warrants.  As to
any final fraction of a share of Common Stock which the Registered Holder of one
or more Warrant Certificates, the rights under which are exercised in the same
transaction, would otherwise be entitled to purchase upon such exercise, the
Company shall pay the cash value thereof determined as provided in the Warrant
Agreement.  No Warrant Certificate representing any fractional Warrant Shares
will be issued.

     This Warrant Certificate is issued under and in accordance with the Warrant
Agreement dated as of September 30, 1997 (the "Warrant Agreement") by and among
the Company and the Purchaser (as defined in the Warrant Agreement) and is
subject to the term and provisions contained in the Warrant Agreement.  All
capitalized terms not defined herein shall have the meanings given such terms as
set forth in the Warrant Agreement.

This Warrant Certificate shall not entitle the Registered Holder to any of the
rights of a stockholder of the Company, including, without limitation, the right
to vote, to receive dividends and other distributions, or to attend or receive
any notice of meetings of stockholders or any other proceedings of the Company.
<PAGE>
 
                                                               CUSIP 827054 11 5


     IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
duly executed under its facsimile corporate seal.

                              SILICON GAMING, INC.


                              By: ____________________________________
                              Name:
                              Title:

[Seal]                        Attest:


                              By:____________________________________
                              Name:
                              Title:  Secretary
<PAGE>
 
                                                               CUSIP 827054 11 5


                             [Form of Assignment]



     FOR VALUE RECEIVED, the undersigned hereby irrevocably sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned
represented by the within Warrant Certificate, with respect to the number of
Warrants to purchase the shares of the Common Stock set forth below:


<TABLE> 
<CAPTION> 
        NAME OF ASSIGNEE                ADDRESS                 NO. OF WARRANTS
        ----------------                -------                 ---------------
<S>                                     <C>                     <C>




</TABLE> 

and does hereby irrevocably constitute and appoint _____________________ true
and lawful Attorney, to make such transfer on the books of Silicon Gaming, Inc.,
maintained for that purpose, with full power of substitution in the premises.

Dated: __________ ___, _____            ________________________________________
                                        Signature


                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant Certificate.) 
<PAGE>
 
                                                               CUSIP 827054 11 5


                        [Form of Election To Purchase]



     The undersigned hereby irrevocably elects to exercise ____________ of the
Warrants represented by this Warrant Certificate and to purchase the shares of
Common Stock issuable upon the exercise of said Warrants, and requests that
certificates for such shares be issued and delivered as follows:

ISSUE TO:_______________________________________________________________________
                                     (NAME)


________________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)


________________________________________________________________________________
                (SOCIAL SECURITY OR OTHER IDENTIFICATION NUMBER)


DELIVER TO:_____________________________________________________________________
                                    (NAME)


at______________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)

     In full payment of the purchase price with respect to the exercise of
Warrants to purchase shares of the Common Stock, the undersigned:

     [_]  hereby tenders payment of $________ by cash, certified check,
          cashier's check or money order payable in United States currency to
          the order of the Company; or

     [_]  hereby delivers to the Company that number of shares of Common Stock
          having a Fair Market Value (as defined in the Warrant Agreement) equal
          to the Exercise Price multiplied by the number of Warrant Shares being
          purchased; or

     [_]  hereby makes a Net Cashless Exercise (as defined in the Warrant
          Agreement).

     If the number of Warrants to purchase the shares of the Common Stock hereby
exercised is less than all the Warrants represented by this Warrant Certificate,
the undersigned requests that a new Warrant Certificate representing the number
of such full Warrants not exercised be issued 
<PAGE>
 
                                                               CUSIP 827054 11 5


and delivered as follows:
<PAGE>
 
                                                               CUSIP 827054 11 5



ISSUE TO:_______________________________________________________________________
                                     (NAME)


________________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)


________________________________________________________________________________
                 (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)


DELIVER TO:_____________________________________________________________________
                                     (NAME)


at______________________________________________________________________________
                         (ADDRESS, INCLUDING ZIP CODE)


Date: __________ ___, ______            ________________________________________
                                        Signature

                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant Certificate.)

                                        PLEASE INSERT SOCIAL SECURITY OR TAX
                                        I.D. NUMBER OF HOLDER


                                        ________________________________________