UNITED STATES
              SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549

                          FORM 10-QSB

(Mark One)

     X      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF 

                       THE SECURITIES EXCHANGE ACT OF 1934
                 For the quarterly period ended         December 31, 1996      

OR                             

               TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF 
                       THE EXCHANGE ACT
     
Commission file number           0-27226         

               SPINTEK GAMING TECHNOLOGIES, INC.   
(Exact name of small business issuer as specified in its charter)

                   California                           33-0134823      
  
         (State or other jurisdiction        (IRS Employer Identification No.)
       of incorporation or organization)

 901-B Grier Drive, Las Vegas, Nevada 89119     ( 702 )  263 - 3660
  (Address of principal executive offices)   (Issuer's telephone number)


Indicate by mark whether the issuer (1) filed all reports to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. 
Yes  X       No      

The number of shares of Common Stock, $0.002 par value, outstanding on
December 31, 1996 was 10,866,885.

<PAGE>                         

               SPINTEK GAMING TECHNOLOGIES, INC.
                 (a development stage company)

                          FORM 10-QSB
                             INDEX
                                                                               
                                                                      Page No.
PART I.  FINANCIAL INFORMATION

      Item 1.   Consolidated Financial Statements                        

       Consolidated Balance Sheet at December 31, 1996                    3

       Consolidated Statements of Operations - From Inception
           to June 30, 1996, Three Months Ended December 31, 1996,
           Six Months Ended December 31, 1996 and From Inception
           to December 31, 1996                                           4

       Consolidated Statements of Cash Flows - From Inception to
           June 30, 1996, Three Months Ended December 31, 1996
           Six Months Ended December 31, 1996 and From Inception
           to December 31, 1996                                           5

       Notes to Financial Statements                                      7

     Item 2.  Plan of Operation                                          10

PART II.  OTHER INFORMATION                                              13

     Item 1.  Legal Proceedings                                          13
                                                                     
     Item 2.  Changes in Securities                                      13

     Item 3.  Defaults on Senior Securities                              13

     Item 4.  Submission of Matters to a Vote of Security Holders        13

     Item 5.  Other Information                                          14

     Item 6.  Exhibits and Reports on Form 8-K                           16

     Signature Page                                                      17

<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  Consolidated Financial Statements

                        SPINTEK GAMING TECHNOLOGIES, INC.
                          (a development stage company)
                              CONSOLIDATED BALANCE SHEETS
                           (in thousands, except per share data)
                                   
                                                       DECEMBER 31,     JUNE 30,
                                                           1996           1996
                                                        (unaudited)
                             
                                 ASSETS
     Current assets:
       Cash                                               $    824      $   121
       Inventories, net                                        532          452
       Prepaid and other                                       370           25
            Total current assets                             1,726          598
     
       Furniture, fixtures and equipment - net                 114           76
       Licenses and patents                                  1,019        1,019
       Note receivable from related company                    130          160
       Other assets                                            114           11
     
       Total assets                                       $  3,103        1,864
     
                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
     Current liabilities:  
       Demand notes payable to affiliated parties         $      0      $ 1,085
       Demand notes payable to stockholders                    435        1,408
       Accounts payable                                        307          413
       Accrued liabilities                                     120          233
       Interest and dividends payable                           77           76
            Total current Liabilities                          939        3,215
     
     Commitments                                       
       
     Stockholders' equity (deficit):
       Preferred stock, no par value, 100,000 shares 
         authorized, 6,842 and 0 shares issued and 
         outstanding at December 31, 1996 and 
         June 30, 1996, respectively                         4,587
       Common stock, $.002 par value, 100,000,000  
         shares authorized, 12,184,114 and
         10,669,091 shares issued and outstanding
         at December 31, 1996 and June 30, 1996,
         respectively                                           24           21
       Additional paid in capital                            4,610        3,592
       Deficit accumulated during development stage         (6,956)      (4,938)
       Dividends: Preferred Stock                              (73)           0
       Treasury stock - 1,317,329 shares at cost               (28)         (26)
            Total stockholders' equity (deficit)             2,164       (1,351)
       
       Total liabilities and stockholders' equity (deficit)$ 3,103      $ 1,864

    The accompanying notes are an integral part of the financial statements.
<TABLE>          
                  SPINTEK GAMING TECHNOLOGIES, INC.
                    (a development stage company)
                 CONSOLIDATED STATEMENT OF OPERATIONS
                 (in thousands, except per share data)
 
<CAPTION>
                                                                                          Cumulative
                                  March 31, 1995    Three Months       Six Months        March 31,1995
                                  (Inception) To        Ended             Ended          (Inception)To
                                   June 30, 1996  December 31, 1996  December 31, 1996  December 31, 1996
                                      (1)            (Unaudited)       (Unaudited)        (Unaudited)

<S>
Revenues:                           <C>              <C>              <C>                 <C>
  Sales                             $          0     $          0     $          0        $           0
  Cost of sales                                0                0                0                    0
     Gross profit                              0                0                0                    0

Operating expenses:          
  Selling, general &
     administrative                        3,168              655            1,192                4,360
  Research and development                 1,492              209              428                1,920
     Total expenses                        4,660              864            1,620                6,280
Operating Loss                            (4,660)            (864)          (1,620)              (6,280)

Other income (expense):       
  Interest and other income                   21               96              126                  147
  Depreciation & amortization                (11)              (7)            (406)                (417)
  Unrealized loss on marketable securities   (83)               0                0                  (83)
  Loss on sale of securities                 (96)               0                0                  (96) 
  Interest expense                          (109)            (218)            (118)                (227)
Net loss                            $     (4,938)    $       (993)    $     (2,018)       $      (6,956)
          
Primary Loss Per Share Of 
  Common Stock Outstanding                ($0.50)          ($0.09)          ($0.18)              ($0.69)
 
Fully Diluted Loss Per Share Of 
  Common And Common Equivalent 
  Stock Outstanding                       ($0.50)          ($0.09)          ($0.18)              ($0.69)
              
Weighted Average Common 
  Shares Outstanding                   9,778,357       11,399,306       11,027,714           10,136,853

Weighted Average Common
  Shares Outstanding
  Assuming Full Dilution               9,778,357       24,749,550       17,702,836           13,645,422
 
<FN>
<F1>    
  (1) Weighted Average Common Shares Outstanding Restated To Reflect Effect
      Of Acquisition Which Was Effective For Accounting Purposes As Of July 1,
      1995.
</FN>
    The accompanying notes are an integral part of the financial statements.
</TABLE>

<PAGE>                                                 
<TABLE>
                        SPINTEK GAMING TECHNOLOGIES, INC.
                          (a development stage company)                        
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                 
<CAPTION>
                                                                                 Cumulative
                                           March 31, 1995    Six Months         March 31, 1995
                                           (Inception) To       Ended           (Inception) To
                                           June 30, 1996   December 31, 1996   December 31, 1996
                                                             (Unaudited)          (Unaudited)                  
 
<S>                                        <C>                <C>                <C>
Cash flows from operating activities:
Net loss                                   $     (4,938)      $   (2,018)        $     (6,956)
Adjustments to reconcile net loss 
  to net cash used by operating activities: 
  Depreciation and Amortization                      11               12                   23
  Amortization of debt issuance costs                 0              395                  395
  Allowance for inventory obsolescence               28               89                  117
  Provision for bad debts                             0               81                   81 
  Loss on sale of securities                         96                0                   96
  Unrealized loss on marketable securities           83                0                   83
  Noncash operating expenses for
    common stock                                    597                0                  597
  Other non-cash adjustments                          0               31                   31
  Changes in operating   
    assets and liabilities:      
    Decrease (increase) in assets:      
      Inventories                                  (480)            (169)                (649)
      Prepaid and other                             (34)            (448)                (482)
    Increase (decrease) in liabilities:
      Accounts payable                              401             (105)                 296
      Accrued liabilities                           233             (113)                 120
      Interest and preferred dividends payable       76                1                   77
Net cash used by operating activities            (3,927)          (2,244)              (6,171)

Cash flows from investing activities: 
  Purchase of furniture, fixture
    and equipment                                   (65)             (49)                (114)
  Acquisition of licenses and patents              (157)               0                 (157)
  Proceeds from sale of securities                  186                0                  186
  Note receivable from related company             (182)              (4)                (186)
  Other                                              (1)               0                   (1)
Net cash used by investing activities              (219)             (53)                (272)

Cash flows from financing activities: 
  Payments-demand notes payable(net)                466           (1,085)                (619)
  Payments-demand notes payable 
    to stockholders (net)                         1,318             (973)                 345
  Proceeds-advances from stockholders             1,000                0                1,000
  Proceeds-Convertible debentures                     0            7,143                7,143
  Debt Issuance Costs                                 0           (2,768)              (2,768)
  Conversion of debenture net of 
     unamortized discount                             0           (4,829)              (4,829)
  Issuance of common and treasury stock           1,483              683                2,166
  Issuance of preferred stock                         0            4,829                4,829
Net cash provided by financing activities         4,267            3,000                7,267
Net increase in cash                                121              703                  824
Cash, beginning of period                             0              121                    0
Cash, end of period                        $        121       $      824         $        824
        

</TABLE>

The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
                    SPINTEK GAMING TECHNOLOGIES, INC.
                      (a development stage company)       
                   CONSOLIDATED STATEMENT OF CASH FLOWS
                             (in thousands)         

<CAPTION>
                                                                                  Cumulative
                                           March 31, 1995     Six Months        March 31, 1995
                                           (Inception) To        Ended          (Inception)To
                                           June 30, 1996   December 31, 1996  December 31, 1996
                                                              (Unaudited)         (Unaudited)                     
 
      
<S>                                         <C>              <C>                             
Supplemental schedule of noncash investing
  and financing activities:
  Issuance of common stock for securities   $      368       $       -         $      368
  Issuance of common stock for employment
    contracts and prepaid services          $       75       $       -         $       75
  Issuance of common stock exchanged
    for debt                                $      152       $      440        $      592
  Issuance of common stock and treasury stock
   for advances from stockholders           $    1,000       $       -         $    1,000
  Issuance of common and treasury stock
    for services related to acquisition
    of public entity                        $    1,014       $       -         $    1,014
  Issuance of preferred stock in exchange for
     convertible debenture, net of 
     unamortized debt issuance costs        $       -        $    4,829        $    4,829
  Issuance of common stock in exchange for
     preferred stock                        $       -        $      243        $      243 
  Purchase of furniture, fixtures and
    equipment through reduction in
    receivable from related parties         $       22       $       -         $       22
  Notes and interest payable to stockholders
    forgiven by stockholders, treated as
    additional paid-in capital              $       -        $       335       $      335 
  License and patent cost included in
    accounts payable                        $       12       $        -        $       12
  License and patent cost acquired by issue
    of notes payable                        $      850       $        -        $      850
  Royalty expense used to reduce note and
    interest receivable from related parties$       -        $        55       $       55
  Reduction of net proceeds of convertible 
    debenture for debt discount and
    issuance costs                          $       -        $     2,768       $    2,768
  Additional paid-in capital recognized
    through reduction in notes and interest
    payable to related parties              $       -        $       335       $      335
 
Supplemental disclosure of cash
  flow information:
  Cash paid for interest                    $       33       $       100       $      133

</TABLE>
        
The accompanying note are an integral part of the financial statements.

<PAGE>

                               SPINTEK GAMING TECHNOLOGIES, INC.
                                         AND SUBSIDIARIES
                                (a development stage enterprise)
                                                                               
                           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                           (unaudited)
                             
1.   The interim financial data is unaudited; however, in the opinion of
management, the interim data includes all adjustments, consisting only of normal
recurring adjustments  necessary for a fair statement of the results for the
interim periods.  The financial statements included herein have been prepared by
the Company pursuant to the rules  and regulations of the Securities and
Exchange Commission.  Certain information and note disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures included herein
are adequate to make the information presented not misleading.  These statements
should be read in conjunction with the Company's Form 10-KSB, as filed with the
Securities and Exchange Commission, for the year ended June 30, 1996.

2.   Litigation          

On October 7, 1996, Spinteknology, Inc., a wholly owned subsidiary of Spintek
Gaming, Inc., a Georgia corporation which is a wholly owned subsidiary of
Spintek Gaming Technologies, Inc., filed with the United States Patent and
Trademark Office in Washington, D.C., a Communication pursuant to 37 C.F.R.
1.607 to Request an Interference.  In this proceeding, Spinteknology is asking
the Patent Office to declare that a conflict exists between its patent
application and a patent issued on July 2, 1996 to the other party to the
proceeding, Bally Gaming International, Inc., and that Spinteknology's patent
rights are superior to those of Bally.

On October 10, 1996, Richard M. Mathis of Reno, Nevada filed a complaint in the
Washoe County, Nevada Second Judicial District Court.  Named as defendants are
Spintek Gaming Technologies, Inc. ("Gaming"); Spintek International, Inc.; and
Lanier M. Davenport, who, until October 18, 1996, was Chairman and Chief
Executive Officer of Gaming.  In his suit, Mr. Mathis contends that he was
forced by Gaming and Davenport to transfer to Davenport his ownership and
control of Gaming, and that, with Gaming's assistance, Davenport defrauded him,
breached a fiduciary duty to him, and converted assets.  Mr. Mathis seeks an
accounting of Gaming's financial affairs and demands actual damages in excess of
$500,000 and punitive damages in excess of $500,000.On January 6, 1997, Gaming
and Spintek International, Inc. filed an answer denying any liability to Mr.
Mathis.  The parties will now engage in discovery.

<PAGE>
                               SPINTEK GAMING TECHNOLOGIES, INC.
                                       AND SUBSIDIARIES
                                (a development stage enterprise)
                                                                               
                           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                          (unaudited)
                              
2.        Litigation (continued)

On October 24, 1996, Spintek Gaming Technologies was served with a lawsuit filed
September 25, 1996, in the Clark County, Nevada Judicial District Court by
Unique Entertainment.  Unique Entertainment contends that it contracted with
Spintek to provide services of two entertainers, but that Spintek failed to
pay for those services. The amount  which Unique Entertainment claims is owed
is $72,750. Spintek timely filed an answer on November 27, 1996, denying
liability.  The parties will now engage in discovery.
          
3.   Conversion of Debt to Preferred Shares

On July 16, 1996, the Company issued a $7,143,000, 4% Convertible Debenture
("Debenture") due December 31, 1997.  The Debenture, plus any accrued interest,
is convertible into preferred shares of the Company, at the option of the
Company at any time prior to the due date.  On August 6, 1996 the Board of
Directors was granted authority by consent of a majority of the stockholders of
the Company to issue up to 100,000 shares of preferred stock.  On October 1,
1996, the Company issued 7,202 preferred shares to the Debenture holder in
satisfaction of the $7,143,000 debt as well as approximately $59,000 in accrued
interest on the debt. These preferred shares, plus any accrued and unpaid
dividends thereon will be converted to common stock of the Company on or before
December 31, 1997, pursuant to the terms of the Debenture.
                    
4.     Conversion of Preferred Shares to Common Shares

The above referenced preferred shares were to have been converted to common
stock at a price ranging from a minimum of $1 to a maximum of $3 per share.
However, because the Company failed to become listed on the NASDAQ National
Market by November 13, 1996 the conversion price was allowed to fall below the
$1 minimum pursuant to the terms of the Debenture that promulgated the issuance
of the preferred shares.   On November 21, 1996 the Company received notice to
convert 360 of the 7,202 preferred shares to 1,113,883 shares of common stock
at an average price $0.325 per share.  The conversion price per share was based
on the closing bid price of the common stock for the five days ended November
20, 1996.
          
<PAGE>
          
                              SPINTEK GAMING TECHNOLOGIES, INC.
                                       AND SUBSIDIARIES
                                 (a development stage enterprise)
                             
                         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                         (unaudited)

5.     Potential Dilution

The remaining 6,842 shares of preferred stock would convert into approximately
13,350,000 shares of common stock of the Company based on the average closing
bid price of the shares of the Company's common stock for the last days of
December, 1996.  Had such a conversion  occurred, the holder of the preferred
shares would have owned approximately 14,464,000 shares of common stock of the
Company, or just over 57% of the shares that would have been issued and
outstanding based on the actual shares outstanding at December 31, 1996.
     
6.   Potential Stock Split

Pursuant to the terms of the Debenture, because the five-day average bid price
of the common shares of the Company did not attain a value of at least $3.00 per
share by October 13, 1996, the holder of the preferred shares has the right to
cause the Company to effect a reverse split the common shares outstanding of the
Company to attain such a value.  As of the date of this document, the Debenture
holder has not caused the Company to reverse split its common stock.
             
7.   Contribution of Shares 

On October 18, 1996, Mr. Lanier M. Davenport, Sr. resigned as Chairman of the
Board of Directors and as Chief Executive Officer of the Company.  Mr. Davenport
in conjunction with his resignation, contributed 1,300,000 of the shares of
common stock he owned in the Company back to the Company in an effort to enhance
shareholder value.  Such contribution of shares has been recorded on the books
of the Company as Treasury Stock at December 31, 1996 with a basis at par value,
or $2,600.  

8.  Forgiveness of Debt

On December 31, 1996, Malcolm C. Davenport, Jr., a stockholder of the Company
and father of Malcolm C. Davenport V, Director of the Company, and Lanier M.
Davenport, forgave $303,000 of debt in the form of demand notes plus 
approximately $7,000 of interest owed to him by the Company, for the benefit
of the Company.  Such debt has been reclassified as Additional Paid-In 
Capital for book purposes at December 31, 1996. 
          
<PAGE>
          
ITEM 2.  Plan of Operation
          
The following is Management's plan of operation for the next twelve (12) months
and analysis of certain significant factors which have affected the Company's
financial position and operating results during the period included in the
accompanying financial statements which include the Company's wholly-owned
subsidiary, Spintek Gaming, Inc. and its wholly-owned subsidiary Spinteknology,
Inc.  This plan should be viewed in conjunction with the accompanying financial
statements, including the notes thereto, and the Company's Form 10-KSB, as filed
with the Securities and Exchange Commission, for the year ended June 30, 1996.
          
Results of Operation
          
For the six months ended December 31, 1996, the Company incurred net losses of
approximately $2,018,000 and negative cash flows from operating activities of
nearly $2,244,000.  Cumulatively, for the twenty-one months from inception
(March 31, 1995) to December 31, 1996, net losses and negative cash flows from
operating activities were approximately $6,956,000 and about $6,171,000,
respectively.
          
The losses for the six months ended December 31, 1996 reflect expenses related
to continuing product development, the expansion of the Company's shareholder
relations program, and attorneys fees incurred primarily as a result of efforts
related to its patent application.  The loss also includes amortization of
approximately $395,000 related to the debt issuance costs of a convertible
debenture issued by the Company, approximately $88,000 for estimated inventory
obsolescence, and nearly $54,000 to extinguish a consulting contract.
Management does not foresee the amortization of debt issuance of a convertible
debenture, nor the extinguishment of consulting contracts through distributions
of lump sums, to be recurring.  Therefore, the operating results for the six
months ended December 31, 1996 are not necessarily indicative of the results
that may be expected for the year ending June 30, 1997.
          
The losses for the twenty-one months ended December 31, 1996  also include
expenses related to the expansion of the Company's marketing program, the
writedown of inventory of approximately $280,000 due to a change in strategic
direction for the Company, and $524,052 for the extinguishment of employee
contracts, paid in the form of the common stock of the Company to certain key
employees and/or their designees.   
          
<PAGE>
          
Liquidity and Working Capital and Plan of Operation
          
To date, absent revenue from operations, the Company has funded itself
primarily through equity and debt transactions.  On July 16, 1996, the Company
issued a $7,143,000, 4% Convertible Debenture ("Debenture") due December 31,
1997.  On October 1, 1996, the Company issued 7,202 preferred shares to the
Debenture holder in satisfaction of the $7,202,000 debt and accrued interest on
the debt. These preferred shares, plus any accrued and unpaid dividends thereon
are convertible into common stock of the Company on or before December 31, 1997.
Such preferred shares were to have been converted to common stock at a price
ranging from a minimum of $1 to a maximum of $3 per share.  However, because the
Company failed to become listed on the NASDAQ National Market by November 13,
1996 the conversion price was allowed to fall below the $1 minimum pursuant to
the terms of the Debenture that promulgated the issuance of the preferred
shares.   On November 21, 1996 the Company received notice to convert 360 of the
7,202 preferred shares to 1,113,883 shares of common stock at an average price
$0.325 per share.  The conversion price per share was based on the closing bid
price of the common stock for the five days ended November 20, 1996. 
          
The remaining 6,842 shares of preferred stock would convert into approximately
13,350,000 shares of common stock of the Company based on the average closing
bid price of the shares of the Company's common stock for the last days of
December, 1996.  Had such a conversion  occurred, the holder of the preferred
shares would have owned approximately 14,464,000 shares of common stock of the
Company, or just over 57% of the shares that would have been issued and
outstanding based on the actual shares outstanding at December 31, 1996.
         
Also, pursuant to the terms of the Debenture, because the five-day average bid
price of the common shares of the Company did not attain a value of at least
$3.00 per share by October 13, 1996,  the holder of the preferred shares has the
right to cause the Company to effect a reverse split the common shares
outstanding of the Company to attain such a value.  As of the date of this
document, the Debenture holder has not caused the Company to reverse split its
common stock.
          
On October 18, 1996, Mr. Lanier M. Davenport, Sr. resigned as Chairman of the
Board of Directors and as Chief Executive Officer of the Company.  Mr. Gary L.
Coulter, Esquire, who has been the Chief Operating Officer and acting Vice
Chairman of the Board of Directors since April 1996, became the Chief Executive
Officer and acting Chairman effective October 18, 1996.  Mr. Davenport in
conjunction with his resignation, contributed 1,300,000 of the shares of common
stock he owned in the Company back to the Company in an effort to enhance
shareholder value.  

On December 31, 1996, Malcolm C. Davenport, Jr., a stockholder of the Company
and father of Malcolm C. Davenport V, Director of the Company, and Lanier M. 
Davenport, forgave $303,000 of debt in the form of demand notes plus 
approximately $7,000 of interest owed to him by the Company, for the benefit 
of the Company.
          
<PAGE>
          
Management is attempting to forge strategic alliances with companies that are
already successful in the gaming industry who are presently looking to enhance
existing products and expand their presence in foreign markets as opportunities
for sales growth.  The Company has signed two technology licensing agreements,
in which the Company has given a nonexclusive license to two separate companies
for the M.A.N.A.G.E.R.S. system.  These two license agreements are with SUZO  
International, (N.L.) B.V. and International Game Technology, Inc.  To date, no
sales have taken place to either of these companies, nor can there be any
assurance that the Company will recognize revenues as a result of these
agreements.
          
During the quarter ended December 31, 1996, the Company completed several
enhancements to its online accounting and auditing software for the ACCUSYSTEM. 
In addition, the ACCUSYSTEM was modified to allow data transmission from remote
locations via a telephone modem.  Management believes these technological
advancements to the ACCUSYSTEM will make it more appealing, not only in Nevada
but worldwide.
          
On July 22, 1996, the Company received an order for 600 ACCUSYSTEMS, along
with a substantial deposit, from Americas Gaming International, Inc. ("AGI"), an
international route operator.  On October 1, 1996, the Company notified AGI that
the first 300 units of their order were ready to ship, and that the balance of
payment for those units was due and payable upon shipping.  However, as of the
date of this document, no product has been shipped and due to the apparent
financial condition of AGI, there can be no assurance that any product will ever
be shipped. During the quarter ended December 31, 1996, the Company sent a
demand notice to AGI for the balance of their order and recognized the deposit
received from them (approximately $75,000) as "Other Income".
          
The Company currently has its ACCUSYSTEM on trial with a major slot route
operator in Las Vegas and has successfully completed a field trial of the
ACCUSYSTEM for two other route operators.  Management believes that the
ongoing trial is proceeding well and that the Company will, more likely than
not, be able to recognize sales as a result of these trials by the end of fiscal
1997. However, to date there has been no commitment from any of the route
operators to purchase the ACCUSYSTEM and there can be no assurance that the
Company will recognize any revenue from these trials.
          
<PAGE>
          
The Company incurred approximately $428,000 in research and development
expenses during the six months ended December 31, 1996 and plans to incur
additional research and development expenses of approximately $400,000 over the
next twelve months on both current and new products.   The Company expects to
purchase approximately $40,000 in operating equipment over the next twelve
months.  The Company currently has 12 full-time employees and expects that it
will employ approximately 20 full-time employees by the end of the next twelve
months.
          
The Company had cash reserves of approximately $824,000 and a positive working
capital position of approximately $787,000 as of December 31, 1996.  However,
based upon current operating projections, and the anticipated cost to produce
and market its products, the Company must secure additional financing before the
end of its fiscal year, June 30, 1997.  Management is currently seeking
additional funding.  However, there can be no assurances that such additional
financing can be located.  Should the Company fail to secure additional
financing, or fail to begin to generate sufficient revenues to support
operations, the Company will be unable to continue as a going concern.  While
the Company believes that it has viable prospects for sale and/or licensing of
its product, as of the date of the document, other than the order from AGI and
the license agreements with IGT and SUZO, the Company has no firm orders for its
products.  In addition, should extensive litigation be required for either the
Mathis suit or Bally patent issue, or should any of this litigation result in an
unfavorable outcome to the Company, either of these matters could have a
material detrimental effect on the Company.  
          
          
PART II.  OTHER INFORMATION
          
ITEM 1.  Legal Proceedings
          
On October 7, 1996, Spinteknology, Inc., a wholly owned subsidiary of Spintek
Gaming, Inc., a Georgia corporation which is a wholly owned subsidiary of
Spintek Gaming Technologies, Inc., filed with the United States Patent and
Trademark Office in Washington, D.C., a Communication pursuant to 37 C.F.R. 
1.607 to Request an Interference.  In this proceeding, Spinteknology is asking
the Patent Office to declare that a conflict exists between its patent
application and a patent issued on July 2, 1996 to the other party to the
proceeding, Bally Gaming International, Inc., and that Spinteknology's patent
rights are superior to those of Bally.
          
<PAGE>
          
On October 10, 1996, Richard M. Mathis of Reno, Nevada filed a complaint in the
Washoe County, Nevada Second Judicial District Court.  Named as defendants are
Spintek Gaming Technologies, Inc. ("Gaming"); Spintek International, Inc.; and
Lanier M. Davenport, who, until October 18, 1996, was Chairman and Chief
Executive Officer of Gaming.  In his suit, Mr. Mathis contends that he was
forced by Gaming and Davenport to transfer to Davenport his ownership and
control of Gaming, and that, with Gaming's assistance, Davenport defrauded him,
breached a fiduciary duty to him, and converted assets.  Mr. Mathis seeks an
accounting of Gaming's financial affairs and demands actual damages in excess
of $500,000 and punitive damages in excess of $500,000.  On January 6, 1997,
Gaming and Spintek International, Inc. filed an answer denying any liability to
Mr. Mathis.  The parties will now engage in discovery.
          
On October 24, 1996, Spintek Gaming Technologies was served with a lawsuit filed
September 25, 1996, in the Clark County, Nevada Judicial District Court by
Unique Entertainment.  Unique Entertainment contends that it contracted with
Spintek to provide services of two entertainers, but that Spintek failed to
pay for those services.  The amount  which Unique Entertainment claims is owed
is $72,750.  Spintek timely filed an answer on November 27, 1996, denying
liability.  The parties will now engage in discovery.
          
          
ITEM 2.  Changes in Securities
          
         Not applicable
          
ITEM 3.  Defaults upon Senior Securities
          
         Not applicable
          
ITEM 4.  Submission of Matters to a Vote of Security Holders
          
At the Company's Annual Meeting of  Stockholders held on December 10, 1996,
the following individuals were elected to the Board of Directors:
          
                                          Votes For        Votes Withheld
          
         Gary L. Coulter                  7,753,991            288,223
         Malcolm C. Davenport V           7,739,340            302,874
         Michael D. Fort                  7,753,951            288,223
          
<PAGE>
          
The following proposals were approved at the Company's Annual Meeting:
          
                                        Votes For  Against  Abstain  Not Voted

    1.  Ratify the Company's 1996
        stock Option Plan and grant
        of options to Gary L. Coulter
        and Robert E. Huggins           6,215,933  425,789   20,689    1,379,803
          
    2.  Ratify the selection of Joseph
        Decosimo & Company as the
        independent public accountants
        for the fiscal year ended 
        June 30, 1997.                  7,922,365  106,849   13,000
         

ITEM 5.  Other Information
          
On October 1, 1996, the Company issued 7,202 preferred shares to the Debenture
holder in satisfaction of the $7,202,000 debt and accrued interest on the debt.
These preferred shares, plus any accrued and unpaid dividends thereon are
convertible into common stock of the Company on or before December 31, 1997.
Such preferred shares were to have been converted to common stock at a price
ranging from a minimum of $1 to a maximum of $3 per share.  However, because the
Company failed to become listed on the NASDAQ National Market by November 13,
1996 the conversion price was allowed to fall below the $1 minimum pursuant to
the terms of the Debenture that promulgated the issuance of the preferred
shares.
          
On November 21, 1996, the Company received notice that the holder of its
preferred shares (the "Holder") was exercising its right to convert 3,601 of
its 7,202 preferred shares in Spintek into common shares of the Company.  Such
conversion would have resulted in a change of control in the Company, since it
would have resulted in the Holder owning in excess of 50% of the common shares
issued and outstanding.  Pursuant to which, Messrs. Coulter, Chairman and Chief
Executive Officer, Huggins, Chief Financial Officer, and Fort, Director and an
officer of the Company, exercised the change-of-control provision in their
respective employment contracts, thereby terminating each of them and entitling
each to two year's salary ($240,000) as severance.  However, prior to any
common shares being issued, the Holder rescinded its notice and sent a
subsequent notice, also dated November 21, 1996, exercising its right to
convert 360 of its 7,202 preferred shares (5%) into common shares.  Such
conversion resulted in the issuance of 1,113,883 shares of the common stock of
the Company, or approximately 10.25% of the issued and outstanding common
shares.  See Note 4 of the Notes to Consolidated Financial Statements.
          
<PAGE>
          
Since the Holder decided to rescind its original notice to convert before any
common shares had issued, Management determined that a change-in-control did not
occur.  Messrs. Coulter and Huggins, therfor rescinded their resignations and
agreed to return the $240,000 advanced to them as severance pay.  Mr. Fort did
not rescind his resignation in writing, but continued to serve as a Director and
an officer and ran for and was reelected, as a Director at the Company's annual
meeting on December 10, 1996.  Nevertheless, he did not agree to, and has not
returned the $240,000 advanced to him.  The Company has insisted on several
occasions that Mr. Fort agree to return the $240,000.  The Company believes
that it is entitled to a return of the money and that Mr. Fort is obligated to
return it.  The $240,000 has been classified as a current receivable at December
31, 1996 on the Company's balance sheet.  Since Management believes that a
change of control did not take place, it is of the opinion that the Company is
entitled to the return of Mr. Fort's advance and intends to make every legal
effort to retrieve the money.

On February 7, 1997, Mr. Fort resigned from his position as an officer and
Director of the Company.
         
As described above, on November 21, 1996 the Company received notice to
convert 360 of the 7,202 preferred shares to 1,113,883 shares of common stock at
an average price $0.325 per share.  The conversion price per share was based on
the closing bid price of the common stock for the five days ended November 20,
1996.    
          
The remaining 6,842 shares of preferred stock would convert into approximately
13,350,000 shares of common stock of the Company based on the average closing
bid price of the shares of the Company's common stock for the last days of 
December, 1996.  Had such a conversion  occurred, the holder of the preferred
shares would have owned approximately 14,464,000 shares of common stock of the
Company, or just over 57% of the shares that would have been issued and
outstanding based on the actual shares outstanding at December 31, 1996.
          
Also, pursuant to the terms of the Debenture, because  the five-day average bid
price of the common shares of the Company did not attain a value of $3.00 per
share or above by October 13, 1996,  the  holder of the preferred shares has the
right to cause the Company to effect a reverse split the common shares
outstanding of the Company to attain such a value.  As of the date of this
document, the Debenture holder has not caused the Company to reverse split its
common stock.

<PAGE>
          
On October 18, 1996, Mr. Lanier M. Davenport resigned as Chairman of the Board
of Directors and as Chief Executive Officer of the Company.  Mr. Gary L.
Coulter, Esquire, who has been the Chief Operating Officer and acting Vice
Chairman of the Board of Directors since April 1996, became the Chief Executive
Officer and acting Chairman effective October 18, 1996.
          
ITEM 6. Exhibits and Reports on Form 8-K
         
        (a) Exhibits
          
            27.1    Financial Data Schedule
          
        (b) Reports on Form 8-K
          
            No reports on Form 8-K were filed during the quarter ended December
            31, 1996.
          
<PAGE>
          
                                   SIGNATURES
          
Pursuant to the requirements of Section 13 of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
          
                                               SPINTEK GAMING TECHNOLOGIES, INC.
          
          
                                               By: /S/ GARY L. COULTER     
          Date: February 7, 1997                   Gary L. Coulter
                                                   Chairman of the Board,
                                                   Chief Executive Officer
                                                   Principal Executive Officer)
          
                                               By: /S/ ROBERT E. HUGGINS       
          Date: February 7, 1997                   Robert E. Huggins           
                                                   Chief Financial Officer     
                                                   (Principal Financial
                                                    and Accounting Officer)


                                               By: /S/ MALCOLM C. DAVENPORT V  
          Date: February 7, 1997                   Malcolm C. Davenport
                                                   Director