EXHIBIT 11.1

                 JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES 
                 COMPUTATION OF EARNINGS PER COMMON SHARE 
               THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
          (Dollars and shares in thousands, except per share data)

<TABLE>

                                                                1997    1996  
                                                               ______  ______
<S>                                                            <C>     <C>
Primary:  
  Earnings:
    Net income                                                 $1,572  $1,573
                                                               ======  ======


  Shares:
    Weighted average number of common shares outstanding (A)    9,082   9,355
                                                               ======  ======

Primary earnings per share                                     $  .17  $  .17
                                                               ======  ======
 
Fully diluted (B):
  Earnings:
    Net income                                                 $1,572  $1,573
    Add after-tax interest (C)                                      5      39
                                                               ______  ______
    Net income, as adjusted                                    $1,577  $1,612
                                                               ======  ======

  Shares:
    Weighted average number of common shares outstanding        9,082   9,355
    Common shares issuable upon exercise of stock options, 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                      182     226
                                                               ______  ______
    Weighted average number of common shares and common
      share equivalents outstanding                             9,264   9,581
                                                               ======  ======


Fully diluted earnings per share                               $  .17  $  .17
                                                               ======  ======
</TABLE>
                                      
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(A)  Common shares issuable upon exercise of stock options, net of common
     shares assumed to be repurchased from the proceeds at the average market
     price for the period have been excluded from the computations 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 an increase in interest income as a result of the 
     assumed increase in investments in U. S. government securities from the
     application of the portion of the proceeds from the assumed exercise of
     stock options 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).