EXHIBIT 11.1
                  
                  JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES 
                   COMPUTATION OF EARNINGS PER COMMON SHARE 
             THREE AND SIX MONTHS ENDED DECEMBER 31, 1995 AND 1994
            (Dollars and shares in thousands, except per share data)
<TABLE>

                                      Three Months Ended     Six Months Ended
                                         December 31,           December 31,
                                      __________________     ________________
                                       1995        1994       1995     1994  
                                      _______    _______     _______  _______
<S>                                   <C>        <C>         <C>      <C>
Primary:  
  Earnings:
    Net income                       $ 1,871     $ 1,656     $ 3,673  $ 3,093
                                     =======     =======     =======  =======

  Shares:
    Weighted average number of common
      shares outstanding (A)           9,303       9,220       9,302    9,220
                                     =======     =======     =======  =======

  Primary earnings per share         $   .20     $   .18     $   .39  $   .34
                                     =======     =======     =======  ======= 
Fully diluted (B):
  Earnings:
    Net income                       $ 1,871     $ 1,656     $ 3,673  $ 3,093
    Add after-tax interest, net (C)      350         486         713      937
                                     _______     _______     _______  _______
    Net income, as adjusted          $ 2,221     $ 2,142     $ 4,386  $ 4,030
                                     =======     =======     =======  =======

  Shares:
    Weighted average number of 
      common shares and common 
      share equivalents outstanding    9,303       9,220       9,302    9,220
    Common shares issuable upon 
      exercise of stock options and 
      warrants, net of common shares 
      assumed to be repurchased from
      the proceeds using the greater 
      of the average market price for 
      the period or the period-end 
      price                            1,974       2,663       1,978    2,449
                                     _______     _______     _______  _______
    Weighted average number of 
      common shares and common share 
      equivalents outstanding, 
      as adjusted                     11,277      11,883      11,280   11,669
                                     =======     =======     =======  =======
   
    Fully diluted earnings per share $   .20     $   .18     $   .39  $   .35
                                     =======     =======     =======  =======
                                      
</TABLE>

(A)  Common shares issuable upon exercise of stock options and warrants, net 
     of common shares assumed to be repurchased from the proceeds at the 
     average market price for the period have been excluded from the 
     computation because they had no effect or were antidilutive on primary
     earnings per share.

(B)  These calculations are submitted in accordance with Regulation S-K 
     Item 601 (b) (ii) although not required by Footnote 2 to paragraph 
     14 of APB Opinion No. 15 because they had no effect or were 
     antidilutive on earnings per share.  

(C)  Amounts represent a decrease in interest expense and an increase in 
     interest income as a result of the assumed reduction in borrowings and 
     increase in investments in U. S. government securities from the 
     application of the portion of the proceeds from the assumed exercise of 
     stock options and warrants which were not applied towards the repurchase 
     of outstanding common shares (equivalent to 20% of the common shares 
     outstanding at the end of the applicable period).