EXHIBIT 11.1

                  JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES 
                   COMPUTATION OF EARNINGS PER COMMON SHARE 
             THREE AND SIX MONTHS ENDED DECEMBER 31, 1996 AND 1995
            (Dollars and shares in thousands, except per share data)
<TABLE>

                                         Three Months Ended    Six Months Ended
                                            December 31,          December 31,
                                         __________________    ________________
                                          1996        1995      1996      1995  
                                         ______     _______    ______    ______
<S>                                      <C>        <C>        <C>       <C>
Primary:                                      
  Earnings:                      
    Net income                           $1,938     $ 1,871    $3,511    $3,673
                                         ======     =======    ======    ======
  Shares:
    Weighted average number of common
      shares outstanding (A)              9,333       9,303     9,344     9,302
                                         ======     =======    ======    ======

Primary earnings per share               $  .21     $   .20    $  .38    $  .39
                                         ======     =======    ======    ======
Fully diluted (B):
  Earnings:
    Net income                           $1,938     $ 1,871    $3,511    $3,673
    Add after-tax interest, net (C)          42         350        86       713
                                         ______     _______    ______    ______
    Net income, as adjusted              $1,980     $ 2,221    $3,597    $4,386
                                         ======     =======    ======    ======
  Shares:
    Weighted average number of common 
      shares outstanding                  9,333       9,303     9,344     9,302
    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                      247       1,974       244     1,978
                                         ______     _______    ______    ______
    Weighted average number of common 
      shares and common share 
      equivalents outstanding, as 
      adjusted                            9,580      11,277     9,588    11,280
                                         ======     =======    ======   =======

Fully diluted earnings per share         $  .21     $   .20    $  .38   $   .39
</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 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 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).