UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                                   FORM 10-Q


[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1997

                                       OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934 

For the transition period from _______________ to___________________

Commission file no. 1-9728

                           JACKPOT ENTERPRISES, INC. 
             (Exact name of registrant as specified in its charter)

            NEVADA                                88-0169922                 
_______________________________     ____________________________________
(State or other jurisdiction of     (I.R.S. Employer Identification No.)
incorporation or organization)

1110 Palms Airport Drive, Las Vegas, Nevada                      89119
___________________________________________                    __________
(Address of principal executive offices)                       (Zip Code)
                                   
                                   702-263-5555
              ____________________________________________________
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 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      
                                   ___           ___

There were 9,075,305 shares of the registrant's common stock outstanding as of 
April 30, 1997.<PAGE>
                   
                 JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                                     
                                     INDEX


                                                              
Part I.   Financial Information

Item 1.   Financial Statements
            Condensed Consolidated Balance Sheets -
              March 31, 1997 and June 30, 1996                        
            Condensed Consolidated Statements of Income - 
              Three and Nine Months Ended March 31, 1997 and 1996             
            Condensed Consolidated Statement of Stockholders' Equity - 
              Nine Months Ended March 31, 1997                           
            Condensed Consolidated Statements of Cash Flows - 
              Nine Months Ended March 31, 1997 and 1996                  
            Notes to Condensed Consolidated Financial Statements         

Item 2.   Management's Discussion and Analysis of 
            Financial Condition and Results of Operations         

Part II.  Other Information

Item 6.   Exhibits and Reports on Form 8-K                              <PAGE>
 
                   JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)

<TABLE>
                                                March 31,     June 30,
              ASSETS                              1997         1996    
              ______                           _________     ________
<S>                                             <C>           <C>
Current assets:
  Cash and cash equivalents                     $ 43,914      $ 39,024
  Prepaid expenses                                 1,040         1,740
  Other current assets                             1,787         3,515
                                                ________      ________
    Total current assets                          46,741        44,279
                                                ________      ________
Property and equipment, at cost:
  Land and buildings                               1,535         1,535
  Gaming equipment                                28,120        27,839
  Other equipment                                  4,567         4,282
  Leasehold improvements                             339           336
                                                ________      ________
                                                  34,561        33,992
  Less accumulated depreciation                  (20,881)      (20,697)
                                                ________      ________
                                                  13,680        13,295
Lease acquisition costs and other
  intangible assets, net of 
  accumulated amortization of 
  $6,053 and $5,142                                3,845         4,749

Goodwill, net of accumulated 
  amortization of $2,506 and $2,382                4,116         4,240

Lease and other security deposits                  3,436         3,436

Other non-current assets                             474           743
                                                ________      ________
    Total assets                                $ 72,292      $ 70,742
                                                ========      ========

</TABLE>







See Notes to Condensed Consolidated Financial Statements.

                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                  
                  JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                   (Dollars in thousands, except share data)
                                  (Concluded)

<TABLE>
 
                                             March 31,        June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY           1997             1996   
____________________________________         ________         _______
<S>                                          <C>              <C>
Current liabilities:
  Accounts payable                           $   397          $   504
  Other current liabilities                    3,275            3,439
                                             _______          _______
      Total current liabilities                3,672            3,943

Deferred rent                                  2,629            3,025
Other liabilities                                543              279
                                             _______          _______
      Total liabilities                        6,844            7,247
                                             _______          _______
Commitments and contingencies

Stockholders' equity:
  Preferred stock - authorized 
    1,000,000 shares of $1 par value; 
    none issued
  Common stock - authorized 
    30,000,000 shares of $.01 par value;
    9,650,743 and 9,631,278 shares issued         97               96
  Additional paid-in capital                  64,321           64,129
  Retained earnings                            6,891            2,905
  Less 519,536 and 293,748 shares of common
    stock in treasury, at cost                (5,861)          (3,635)
                                             _______          _______
      Total stockholders' equity              65,448           63,495
      Total liabilities and                  _______          _______
        stockholders' equity                 $72,292          $70,742
                                             =======          =======

</TABLE>






See Notes to Condensed Consolidated Financial Statements.
<PAGE>
                   JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              THREE AND NINE MONTHS ENDED MARCH 31, 1997 AND 1996
                 (Dollars in thousands, except per share data)
<TABLE>

                              Three Months Ended       Nine Months Ended
                                   March 31,                March 31,        
                              __________________       __________________
                                1997      1996          1997        1996 
                              _______    _______       _______    _______
<S>                           <C>        <C>           <C>        <C>
Revenues:
  Route operations            $22,221    $21,000       $65,154    $62,055
  Casino operations               726      1,846         2,308      5,976
                              _______    _______       _______    _______
      Totals                   22,947     22,846        67,462     68,031
                              _______    _______       _______    _______
Costs and expenses:
  Route operations             17,593     16,344        51,752     47,689
  Casino operations               650      1,745         2,117      5,237
  Amortization                    430        546         1,292      1,657
  Depreciation                    869      1,008         2,615      3,303
  General and administrative      975        958         2,970      3,190
                              _______    _______       _______    _______
      Totals                   20,517     20,601        60,746     61,076
                              _______    _______       _______    _______
Operating income                2,430      2,245         6,716      6,955
                              _______    _______       _______    _______
Other income (expense):
  Interest and other income       426        463         1,229      1,177
  Interest expense                                                    (22)
                              _______    _______       _______    _______
      Totals                      426        463         1,229      1,155
                              _______    _______       _______    _______
Income before income tax        2,856      2,708         7,945      8,110
                              _______    _______       _______    _______
Provision for Federal 
  income tax:
    Current                       598      2,393         2,176      2,393
    Deferred                      287     (1,527)          287        202
                              _______    _______       _______    _______
      Totals                      885        866         2,463      2,595
                              _______    _______       _______    _______

Net income                    $ 1,971    $ 1,842       $ 5,482    $ 5,515
                              =======    =======       =======    =======
Earnings per common share     $   .21    $   .20       $   .59    $   .59
                              =======    =======       =======    =======
Cash dividends per share of
  common stock                $  -       $   .08       $   .16    $   .24
                              =======    =======       =======    =======

See Notes to Condensed Consolidated Financial Statements.

                   
                   
                   
                   
                   
                   
                   
                   JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                        NINE MONTHS ENDED MARCH 31, 1997
            (Dollars and shares in thousands, except per share data)
                            

</TABLE>
<TABLE>                            
                                                     Treasury       
            Common Stock    Additional                Stock          Total
            _____________    Paid-in    Retained   ______________ Stockholders'
            Shares Amount    Capital    Earnings   Shares Amount     Equity
            ______ ______   __________  ________   ______ _______ _____________
<S>         <C>    <C>      <C>         <C>        <C>    <C>     <C>
Balance
July 1,
1996         9,631   $96      $64,129    $ 2,905   (294)  $(3,635)    $63,495

Cash
dividends
($.16 per
share)                                    (1,496)                      (1,496)

Repurchases
of common
stock                                              (226)   (2,226)     (2,226)

Issuance of
shares on
exercise
of stock
options         20     1          192                                     193

Net
income                                     5,482                        5,482
             _____   ___      _______    _______    ____  _______     _______
Balance
March 31,
1997         9,651   $97      $64,321    $ 6,891    (520) $(5,861)    $65,448
             =====   ===      =======    =======    ====  =======     =======


</TABLE>
















 See Notes to Condensed Consolidated Financial Statements.<PAGE>
              
                  JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   NINE MONTHS ENDED MARCH 31, 1997 AND 1996
                             (Dollars in thousands)

<TABLE>
                                                         1997          1996  
                                                       _______       _______
<S>                                                    <C>           <C>
Operating activities:
  Net income                                           $ 5,482       $ 5,515
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization                      3,907         4,960
      Deferred Federal income tax                          287           202
      Net loss (gain) on sales and retirements 
        of property and equipment                           15          (344)
      Increase (decrease) from changes in:
        Prepaid expenses and other current assets          773           519
        Other non-current assets                          (128)         (107)
        Accounts payable                                  (107)         (233)
        Other current liabilities                          122           686
        Deferred rent                                     (396)         (216)
        Other liabilities                                  115          (274)
                                                       _______       _______
          Net cash provided by operating activities     10,070        10,708
                                                       _______       _______
Investing activities:
  Net proceeds from location operators                     190           181
  Proceeds from sales of subsidiary and property         1,612         1,024
  Purchases of property and equipment                   (3,088)       (3,422)
  Increase in lease acquisition costs and other                
    intangible assets                                     (365)         (311)
  Decrease in lease and other security deposits                           37
                                                       _______       _______
          Net cash used in investing activities         (1,651)       (2,491)
                                                       _______       _______
Financing activities:
  Repayments of long-term debt                                          (949)
  Proceeds from issuance of common stock                   193            33
  Repurchases of common stock                           (2,226)
  Dividends paid                                        (1,496)       (2,226)
                                                       _______       _______
          Net cash used in financing activities         (3,529)       (3,142)
                                                       _______       _______

Net increase in cash and cash equivalents                4,890         5,075
Cash and cash equivalents at beginning of period        39,024        32,916
                                                       _______       _______
Cash and cash equivalents at end of period             $43,914       $37,991
                                                       =======       =======
Supplemental disclosures of cash flow data:
  Cash paid during the period for:
    Interest                                           $   -         $    22
    Federal income tax                                 $ 1,600       $ 1,000 
 </TABLE>

See Notes to Condensed Consolidated Financial Statements.


                     JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General:
             In the opinion of management, the accompanying unaudited 
             condensed consolidated financial statements reflect all 
             adjustments, consisting of normal recurring accruals, necessary 
             to present fairly Jackpot's financial position as of March 31, 
             1997, the results of its operations for the three and nine months 
             ended March 31, 1997 and 1996 and its cash flows for the nine 
             months ended March 31, 1997 and 1996.  Information included in 
             the condensed consolidated balance sheet as of June 30, 1996 has 
             been derived from Jackpot's Annual Report to the Securities and 
             Exchange Commission on Form 10-K for the year ended June 30, 1996
             (the "1996 Form 10-K").  The earnings for the three and nine 
             months ended March 31, 1997 and 1996 are not necessarily 
             indicative of results for a full year.
       
             In March 1995, the Financial Accounting Standards Board 
             (the "FASB") issued Statement of Financial Accounting Standards 
             No. 121, "Accounting for the Impairment of Long-Lived Assets and 
             for Long-Lived Assets to Be Disposed Of" ("SFAS 121"), which is 
             effective for fiscal years beginning after December 15, 1995.  
             SFAS 121 requires that long-lived assets and certain identifiable 
             intangible assets to be held and used by an entity be reviewed for
             impairment whenever events or changes in circumstances indicate 
             that the carrying amount may not be recoverable.  The adoption
             of SFAS 121, which was effective July 1, 1996, had no effect on 
             the consolidated financial statements.

             In October 1995, the FASB issued Statement of Financial Accounting
             Standards No. 123 "Accounting for Stock-Based Compensation" 
             ("SFAS 123"), which is effective for fiscal years beginning after 
             December 15, 1995.  Although SFAS 123 encourages an entity to 
             measure compensation by applying the fair value method of 
             accounting for employee stock-based compensation arrangements, it 
             permits an entity to continue to account for employee stock-based 
             compensation arrangements under the provisions of Accounting 
             Principles Board Opinion 25 ("ABP 25").  The Company intends to 
             continue to account for stock-based compensation in accordance 
             with APB 25.  The pro forma effect on net income and earnings 
             per share, as if the fair value recognition provisions had been
             applied, will be provided in a note to the consolidated financial 
             statements for the fiscal year ending June 30, 1997, as required 
             by SFAS 123.

             In February 1997, the FASB issued Statement of Financial
             Accounting Standards No. 128, "Earnings per Share" ("SFAS 128"), 
             which is effective for periods, including interim periods, ending 
             after December 15, 1997.  Earlier adoption of the statement is not
             permitted.  SFAS 128 establishes standards for computing and 
             presenting earnings per share ("EPS"), including the replacement 
             of the presentation of primary EPS with the presentation of basic 
             EPS, as defined.  Upon adoption of SFAS 128, all prior-period EPS 
             data presented shall be restated to conform with the provisions of
             the statement.  As required by SFAS 128, Jackpot will adopt this 
             statement for the three month period ending December 31, 1997. 
             Management believes that the implementation of SFAS 128 will not 
             have a significant impact on EPS.

Note 2 - Earnings per share:
             Earnings per share for the three and nine months ended March 31, 
             1997 and 1996 are computed by dividing net income by the weighted 
             average number of common shares outstanding.  Stock options and 
             warrants have been excluded from the computations because they 
             had no effect on earnings per share.  

Note 3 - Stockholders' equity:
           Cash dividends:
             For the nine months ended March 31, 1997, Jackpot paid cash 
             dividends of approximately $1,496,000 ($.16 per common share). On 
             October 29, 1996, Jackpot's Board of Directors announced that it 
             would suspend future payment of quarterly cash dividends, subject 
             to periodic review and reconsideration.

           The 1992 Incentive and Non-qualified Stock Option Plan:
             On September 30, 1996, the exercise price of the June 30, 1996 
             grant of nonqualified stock options to purchase an aggregate of 
             110,000 shares of common stock (27,500 each to four directors) 
             was vested at $10.00 per share, the fair market value of the stock
             on that date, pursuant to the terms of the 1992 Incentive and 
             Non-qualified Stock Option Plan (the "1992 Plan").  See Note 7 
             of Notes to Consolidated Financial Statements in the 1996 Form 
             10-K for further information regarding the 1992 Plan and option
             grants.

           Common stock in treasury:
             Jackpot purchased 140,653 and 225,788 shares of its common stock 
             at the market price on the date of purchase for a total cost of 
             approximately $1,389,000 and $2,226,000, or an average of $9.88 
             and $9.86 per share during the three and nine months ended 
             March 31, 1997, respectively.  Purchases during the nine months 
             ended March 31, 1997 include 55,174 shares acquired from American 
             Country Insurance Company for approximately $545,000 (the market 
             price on the date of purchase).  Two directors of Jackpot were 
             directors and indirect beneficial owners of an aggregate of more 
             than 51% of the common stock of such insurance company at the 
             time of such purchase.

Note 4 - Commitments and contingencies:
           Legal matter:
             On August 17, 1992, Phar-Mor, Inc. ("Phar-Mor"), a large chain 
             store, announced that it had filed for protection under Chapter 11
             of the U.S. Bankruptcy Code.  Jackpot operated 51 gaming machines
             at three Phar-Mor store locations in Nevada under a license 
             agreement dated February 10, 1990 (the "Original Agreement").  
             Under the Original Agreement, Jackpot made certain advances to 
             Phar-Mor.  Thereafter, Jackpot and Phar-Mor, subject to bankruptcy
             court approval, entered into an amended license agreement, dated 
             January 1, 1993 (the "Amended Agreement"). If the Amended 
             Agreement were to become final, Jackpot would receive credits 
             for certain prepaid sums but would be required to pay certain 
             additional obligations.

             On May 12, 1995, Phar-Mor announced the closing of 41 stores, 
             including its three stores in Nevada.  On May 24, 1995 Jackpot 
             notified Phar-Mor that it was in default under (i) the Original 
             Agreement, and (ii) the Amended Agreement to the extent 
             applicable. Jackpot has taken the position that the Amended 
             Agreement has not become operative and has not replaced the 
             Original Agreement.  Jackpot has claimed monetary damages in 
             excess of several millions of dollars resulting from Phar-Mor's 
             alleged default, consisting of, but not limited to certain 
             refundable monies, prepaid license fees, lost profits and other 
             consequential and incidental damages.
             
             On July 25, 1995, Phar-Mor notified Jackpot that it disagreed with
             Jackpot's position that Phar-Mor has defaulted under the terms of 
             either the Original Agreement or the Amended Agreement.  Phar-Mor 
             maintains that the Amended Agreement is the operative agreement 
             and is seeking to enforce its rights thereunder.  On or about 
             March 7, 1996, Phar-Mor filed a lawsuit against Jackpot in the 
             United States Bankruptcy Court for the Northern District of Ohio, 
             claiming it is owed approximately $1 million under the Amended 
             Agreement.  Jackpot has filed an answer and counterclaim 
             reflecting its position that under the Original Agreement Jackpot 
             is owed in excess of $3 million.  Jackpot, based upon discussions 
             with counsel, does not believe it is probable that Phar-Mor will 
             prevail in this matter.  If Phar-Mor were to prevail and the 
             Amended Agreement is determined to be the operative agreement, 
             Jackpot could be liable for certain obligations under the Amended 
             Agreement up to approximately $1 million.  If Jackpot were to 
             prevail, it would become an unsecured creditor with respect to its
             claims against Phar-Mor which exceed $3 million.

Note 5 - Subsequent events:           
           Leases:
             In April 1997, Jackpot entered into four agreements for long-term 
             contract extensions which take effect July 1, 1997.  Each 
             agreement provides Jackpot the continued right to operate at 
             certain existing locations and future locations, if any, of such 
             customers. Presently, these agreements involve the operation of
             approximately 1,174 gaming machines in 76 locations.

             Future minimum lease payments (dollars in thousands) under non-
             cancelable operating leases or licenses, including the agreements
             described above, will aggregate approximately $162,106 at 
             June 30, 1997, payable as follows:  $32,958 in 1998; $33,092 in 
             1999; $25,552 in 2000; $22,458 in 2001; $22,349 in 2002; and 
             $25,697 thereafter.
             
<PAGE>
Item 2.  Management's Discussion and Analysis of Financial
         _________________________________________________
         Condition and Results of Operations
         ___________________________________

Capital Resources and Liquidity
_______________________________
    
    Cash Flows:

    Jackpot's principal sources of cash for the nine months ended March 31, 
1997 (the "1997 nine months"), consisted primarily of the cash flows from 
operating activities and its available cash and cash equivalents which, at 
June 30, 1996, approximated $39.0 million and at March 31, 1997 approximated 
$43.9 million. 

    Net cash provided by operating activities in the 1997 nine months was 
$10.1 million.  Net cash used in investing activities in the 1997 nine 
months was approximately $1.7 million which included cash received of 
approximately $1.8 million and cash used of approximately $3.5 million.  
The $1.8 million of cash received from investing activities consisted 
primarily of the proceeds from the sale of Jackpot's interest in Jackpot City,
Inc. (the "Nugget"), a casino operation located in Reno, Nevada.  The $3.5 
million of cash used was primarily for the purchase of property and 
equipment.

    Net cash used in financing activities in the 1997 nine months was 
approximately $3.5 million which resulted from payments for repurchases of 
common stock and dividends of approximately $2.2 million and $1.5 million, 
respectively, net of approximately $.2 million of proceeds from the issuance 
of common stock upon the exercise of stock options.

    Liquidity:

    At March 31, 1997, Jackpot had cash and cash equivalents of approximately 
$43.9 million, an increase of approximately $4.9 million from June 30, 1996.
Jackpot's working capital and current ratio also increased to approximately 
$43.1 million and 12.7 to 1, respectively, at March 31, 1997, from $40.3 
million and 11.2 to 1, respectively, at June 30, 1996 primarily as a result 
of the activities described above.

    On October 29, 1996, Jackpot's Board of Directors announced that it would 
suspend future payment of quarterly cash dividends, subject to periodic review 
and reconsideration.  Further, the Board authorized Jackpot's management to 
repurchase up to 500,000 shares of its common stock, from time to time, at 
prevailing market prices.

    On May 24, 1995, Jackpot notified Phar-Mor, Inc. ("Phar-Mor"), a large 
chain store, that it was in default under the terms of certain agreements.
On July 25, 1995, Phar-Mor notified Jackpot that it disagreed with Jackpot's 
position and asserted that Jackpot was in default under the terms of an 
amended agreement.  On or about March 7, 1996, Phar-Mor filed a lawsuit 
against Jackpot in the United States Bankruptcy Court for the Northern
District of Ohio, claiming it is owed approximately $1 million under the 
amended agreement.  Jackpot has filed an answer and counterclaim reflecting 
its position that under an original agreement Jackpot is owed in excess of 
$3 million.  Jackpot, based upon discussions with counsel, does not believe 
it is probable that Phar-Mor will prevail in this matter.  If Phar-Mor were 
to prevail, Jackpot could be liable for certain obligations up to $1 million.
If Jackpot were to prevail, it would become an unsecured creditor of Phar-Mor 
in an amount in excess of $3 million.  See Note 9 of Notes to Consolidated
Financial Statements in the 1996 Form 10-K for further information regarding 
this matter.

    Management believes Jackpot's working capital and cash provided by 
operations will be sufficient to enable Jackpot to meet its planned capital 
expenditures and other cash requirements for the remainder of the fiscal year 
ending June 30, 1997.  With respect to planned capital expenditures, 
management anticipates Jackpot will purchase approximately $2.0 million of 
property and equipment, exclusive of business acquisitions, if any, in the 
remainder of fiscal 1997 to be used in existing and currently planned new
locations.

    Jackpot continues to selectively explore expansion opportunities, both in 
and outside Nevada, and various potential acquisitions, both gaming and 
nongaming.  Management believes working capital and cash provided by 
operations will be sufficient to enable Jackpot to pursue expansion 
opportunities; however, Jackpot may seek additional debt or equity financing 
to facilitate expansion opportunities and potential acquisitions.

    Other:

    In March 1995, the Financial Accounting Standards Board (the "FASB") 
issued Statement of Financial Accounting Standards No. 121, "Accounting for 
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed 
Of" ("SFAS 121"), which is effective for fiscal years beginning after 
December 15, 1995.  SFAS 121 requires that long-lived assets and certain 
identifiable intangible assets to be held and used by an entity be reviewed 
for impairment whenever events or changes in circumstances indicate that the 
carrying amount may not be recoverable.  The adoption of SFAS 121, which was 
effective July 1, 1996, had no effect on the consolidated financial 
statements.

    In October 1995, the FASB issued Statement of Financial Accounting 
Standards No. 123 "Accounting for Stock-Based Compensation" ("SFAS 123"), 
which is effective for fiscal years beginning after December 15, 1995.  
Although SFAS 123 encourages an entity to measure compensation by applying 
the fair value method of accounting for employee stock-based compensation 
arrangements, it permits an entity to continue to account for employee 
stock-based compensation arrangements under the provisions of Accounting 
Principles Board Opinion 25 ("ABP 25").  The Company intends to continue 
to account for stock-based compensation in accordance with APB 25.  The pro 
forma effect on net income and earnings per share, as if the fair value 
recognition provisions had been applied, will be provided in a note to the 
consolidated financial statements for the fiscal year ending June 30, 1997, 
as required by SFAS 123.  

    In February 1997, the FASB issued Statement of Financial Accounting 
Standards No. 128, "Earnings per Share" ("SFAS 128"), which is effective for 
periods, including interim periods, ending after December 15, 1997.  Earlier 
adoption of the statement is not permitted.  SFAS 128 establishes standards 
for computing and presenting earnings per share ("EPS"), including the 
replacement of the presentation of primary EPS with the presentation of 
basic EPS, as defined.  Upon adoption of SFAS 128, all prior-period EPS data 
presented shall be restated to conform with the provisions of the statement. 
As required by SFAS 128, Jackpot will adopt this statement for the three 
month period ending December 31, 1997.  Management believes that the 
implementation of SFAS 128 will not have a significant impact on EPS.

Results of Operations
_____________________
    
    Revenues:

    Total revenues in the three months ended March 31, 1997 (the "1997 three
months") increased approximately $.1 million (from $22.8 million in the three 
months ended March 31, 1996 (the "1996 three months") to $22.9 million in 
the 1997 three months), while total revenues in the 1997 nine months decreased 
approximately $.5 million (from $68.0 million in the nine months ended 
March 31, 1996 (the "1996 nine months") to $67.5 million in the 1997 nine 
months).  The increase in total revenues of $.1 million in the 1997 three 
months was the net result of an increase of $1.2 million (from $21.0 million 
in the 1996 three months to $22.2 million in the 1997 three months) in gaming 
machine route operations ("route operations") revenues and a decrease of
$1.1 million (from $1.8 million in the 1996 three months to $.7 million in 
the 1997 three months) in casino operations revenues.  The decrease in total 
revenues of $.5 million in the 1997 nine months was the net result of an 
increase of $3.1 million (from $62.1 million in the 1996 nine months to $65.2 
million in the 1997 nine months) in route operations revenues and a decrease 
of $3.6 million (from $5.9 million in the 1996 nine months to $2.3 million 
in the 1997 nine months) in casino operations revenues.
    
    The increases in route operations revenues in the 1997 three months and 
1997 nine months of $1.2 million and $3.1 million, respectively, resulted 
from a combination of additional revenues generated from new and existing 
locations, net of lost revenues from terminated locations. New locations 
generated revenues of approximately $1.5 million and $3.9 million and 
existing locations generated additional revenues of $.7 million and $2.1 
million in the 1997 three months and 1997 nine months, respectively.
Terminated locations had generated revenues of $1.0 million and $2.9 million 
in the 1996 three months and 1996 nine months, respectively. 
    
    The amount of route operations revenues attributable to fixed payment 
leases and revenue sharing contracts for the three and nine months ended 
March 31, 1997 and 1996 are summarized below (dollars in thousands):
               
                                          Three Months Ended March 31, 
                                   ____________________________________________
                                            1997                  1996      
                                   ____________________     ___________________
                                             Percent                 Percent
                                             of route                of route
                                             operations              operations
                                   Amount    revenues       Amount   revenues  
Route operations:                  _______   __________     _______  __________
  Fixed payment leases             $15,074     67.8%        $13,521     64.4%
  Revenue sharing contracts          7,147     32.2           7,479     35.6
                                   _______    _____         _______    _____
    Totals                         $22,221    100.0%        $21,000    100.0%
                                   =======    =====         =======    =====

                                            
                                            
                                            
                                            
                                            
                                            
                                            
                                            
                                            Nine Months Ended March 31, 
                                   ____________________________________________
                                            1997                  1996
                                   ____________________    ____________________
                                             Percent                 Percent
                                             of route                of route
                                             operations              operations
                                   Amount    revenues      Amount    revenues  
Route operations:                  _______   __________    _______   __________
  Fixed payment leases             $43,392      66.6%      $39,433      63.5%
  Revenue sharing contracts         21,762      33.4        22,622      36.5
                                   _______     _____       _______     _____
    Totals                         $65,154     100.0%      $62,055     100.0%
                                   =======     =====       =======     =====
    
    The decreases in casino operations revenues in the 1997 three months and 
the 1997 nine months were due primarily to the ceasing of operations at the 
Debbie Reynolds' Hotel and Casino effective March 31, 1996 and the sale of 
Jackpot's interest in the Nugget on June 30, 1996.  The 1996 three months 
and 1996 nine months include revenues of $1.1 million and $3.6 million, 
respectively, which were generated at these two locations.

    In April 1997, Jackpot entered into agreements for long-term contract 
extensions with four of its largest retail chain store customers, two of 
which were not due to expire June 30, 1997.  Despite a long-term relationship 
with a privately held Northern Nevada-based chain store customer, Jackpot 
was not willing to agree with the terms sought for a contract extension, 
which management believed were uneconomic.  The present agreement, which 
expires on June 30, 1997, involves the operation of approximately 272 gaming 
machines in 16 locations.  During the 1997 nine months, Jackpot generated
approximately 6% of its total revenues and a significant amount of operating 
income from operations at such customer's locations.   The expiration of 
this agreement will have an adverse effect on the Company's results of 
operations for periods beginning July 1, 1997, however, management believes 
that recently opened locations and projected revenues from presently 
scheduled openings of new chain store locations through fiscal 1998 will 
replace a portion of the revenues generated at such lost customer's 
locations.  During the 1997 nine months, Jackpot commenced operations in 6 
chain store locations aggregating 90 gaming machines.  In addition, at the 
present time, Jackpot's chain store customers have indicated their intention 
to open 12 locations, which will add an additional 180 machines during fiscal 
1998.  While management believes these plans are realistic, no assurance can 
be given with respect to the ultimate number of future openings, machines 
or timing.  See Item 1 - Business - Gaming Machine Route Operations in the 
1996 Form 10-K for a further description of the Company's lease and license 
agreements.

    Costs and expenses:

    With respect to the four agreements for long-term contract extensions 
described above, a very competitive pricing environment caused the Company 
to offer significant increases in location rent over the existing agreements.  
If such increases in location rent, which are effective July 1, 1997, are not 
offset by increases in revenues, or by reductions in operating costs, the 
extension of the agreements will have an adverse effect on the Company's 
results of operations for periods beginning July 1, 1997.  Such agreements 
provide Jackpot the continued right to operate gaming machines at certain
existing locations and future locations, if any, of such customers.  
Presently, these agreements involve the operation of approximately 1,174 
gaming machines in 76 locations.

    Route operations expenses in the 1997 three months and 1997 nine months
increased approximately $1.3 million (from $16.3 million in the 1996 three 
months to $17.6 million in the 1997 three months) and $4.1 million (from $47.7 
million in the 1996 nine months to $51.8 million in the 1997 nine months) and, 
as a percentage of route operations revenues, increased to 79.2% and 79.4% 
in the 1997 three months and 1997 nine months, respectively, from 77.8% and 
76.8% in the 1996 three months and 1996 nine months, respectively.  The 
increases of $1.3 million and $4.1 million over the respective 1996 periods 
were attributable to increases of $.7 million and $2.3 million, respectively, 
in location rent, increases of $.1 million and $.3 million, respectively, in
payroll costs, increases of $.3 million and $.8 million, respectively, in 
workers' compensation and group health costs and increases of $.2 million and 
$.7 million respectively, in other route operations expenses.  Route operations
expenses increased as a percentage of route operations revenues in the 
respective 1997 periods primarily because of an increase in location rent, as 
a percentage of revenues, attributable to revenue sharing contracts and to 
increases in the costs and expenses described above.
    
    Casino operations expenses in the 1997 three months and 1997 nine months
decreased approximately $1.1 million (from $1.7 million in the 1996 three 
months to $.6 million in the 1997 three months) and $3.1 million (from $5.2 
million in the 1996 nine months to $2.1 million in the 1997 nine months).  
With respect to casino operations expenses, the 1996 three months and 1996 
nine months include approximately $1.1 million and $3.1 million of costs and 
expenses incurred by the Nugget and the casino operations at the Debbie 
Reynolds' Hotel and Casino. 
  
    Amortization expense in the 1997 three months and 1997 nine months 
decreased approximately $.1 million (from $.5 million in the 1996 three 
months to $.4 million in the 1997 three months) and $.4 million (from $1.7 
million in the 1996 nine months to $1.3 million in the 1997 nine months).  
The decrease in amortization expense in the respective 1997 periods was 
primarily attributable to reductions in amortization expense related to 
lease acquisition costs and prior service costs associated with the Jackpot 
Retirement Plan for Directors.  The 1997 three months and 1997 nine months 
did not include any amortization expense of prior service costs as all such 
costs had been fully amortized at June 30, 1996.

    Depreciation expense in the 1997 three months and 1997 nine months 
decreased approximately $.1 million (from $1.0 million in the 1996 three 
months to $.9 million in the 1997 three months) and $.7 million (from $3.3 
million in the 1996 nine months to $2.6 million in the 1997 nine months).  
The decrease in depreciation expense in the 1997 nine months was primarily 
attributable to gaming machines acquired in connection with the purchase of 
a gaming machine route business in 1992, which had become fully depreciated 
during the three months ended September 30, 1995.
  
    General and administrative expenses in the 1997 three months remained 
constant at approximately $1.0 million compared to the 1996 three months, and 
in the 1997 nine months decreased approximately $.2 million (from $3.2 million
in the 1996 nine months to $3.0 million in the 1997 nine months).  The 
decrease in general and administrative expenses in the 1997 nine months was 
due primarily to decreases in payroll and other compensation related costs.

    Other:

    The effective tax rate in the 1997 three months and 1997 nine months was 
31%, which was slightly lower than the 32% rate in the 1996 three months and 
1996 nine months primarily because of the increase in tax benefits from 
tax-exempt interest income.

    General:

    Operating income in the 1997 three months increased approximately $.2 
million (from $2.2 million in the 1996 three months to $2.4 million in the 
1997 thee months) and decreased approximately $.2 million (from $6.9 million 
in the 1996 nine months to $6.7 million in the 1997 nine months).  The 
increase in operating income in the 1997 three months resulted primarily 
from the decreases in amortization and depreciation expenses previously 
described.  The decrease in operating income in the 1997 nine months resulted 
primarily from decreases in the operating margin of the route operations and
casino operations of approximately $1.0 million and $.5 million, respectively, 
net of an overall decrease in amortization, depreciation and general and 
administrative expenses of approximately $1.3 million.  The decrease of 
$1.0 million (from $14.4 million in the 1996 nine months to $13.4 million in 
the 1997 nine months) in the route operations operating margin was due 
principally to the increase in location rent expense as previously described.
The decrease of $.5 million (from $.7 million in the 1996 nine months to $.2 
million in the 1997 nine months) in the casino operations operating margin
was due primarily to the ceasing of operations at the Debbie Reynolds' 
Hotel and Casino and the sale of Jackpot's interest in the Nugget, described 
above.

    Net income in the 1997 three months increased approximately $.2 million 
(from $1.8 million in the 1996 three months to $2.0 million in the 1997 three 
months) and in the 1997 nine months remained constant at approximately $5.5 
million compared to the 1996 nine months due to the results of operations 
described above.  Earnings per share in the 1997 three months and 1997 nine 
months were $.21 and $.59 per share, respectively, compared to earnings per 
share in the 1996 three months and 1996 nine months of $.20 and $.59, 
respectively.

    Forward-looking statements:

    Certain information included in this Form 10-Q and other materials filed 
or to be filed by the Company with the Securities and Exchange Commission 
contains statements that may be considered forward-looking.  In addition, 
from time to time, the Company may release or publish forward-looking 
statements relating to such matters as anticipated financial performance, 
business prospects, technological developments and similar matters.  The 
Private Securities Litigation Reform Act of 1995 provides a safe harbor for 
forward-looking statements.  In order to comply with the terms of the safe 
harbor, the Company notes that a variety of factors could cause the Company's 
actual results and experience to differ materially from the anticipated 
results or other expectations expressed in the Company's forward-looking 
statements.  The risks and uncertainties that may affect the operations, 
performance, development and results of the Company's business include, but 
are not limited to, competitive pressures, the loss or nonrenewal of any of 
Jackpot's significant contracts, conditioning or suspension of any gaming
license, adverse results of significant litigation matters, possible future 
financial difficulties of a significant customer and the continued growth of 
the gaming industry and population in Nevada.  Readers are cautioned not to 
place undue reliance on any forward-looking statements, which speak only as 
of the date thereof.  The Company assumes no obligation to update or 
supplement forward-looking statements as a result of new circumstances or 
subsequent events.
<PAGE>
                            PART II.  OTHER INFORMATION
                                      _________________

Item 6.  Exhibits and Reports on Form 8-K

          (a)  Exhibits:

               Exhibit 11.1 - Computation of Earnings Per Common Share for 
               the three and nine months ended March 31, 1997 and 1996.

               Exhibit 27.1 - Financial Data Schedule (EDGAR version only).

          (b)  Reports on Form 8-K - No Form 8-K was filed for the three 
               months ended March 31, 1997.

                                      Signature
                                      _________

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                                       JACKPOT ENTERPRISES, INC.  
                                       _________________________
                                            (Registrant)
                                              
                                       By:   /s/ Bob Torkar 
                                       _________________________
                                       BOB TORKAR
                                       Senior Vice President - Finance,
                                       Treasurer and Chief Accounting Officer
Date:  May 14, 1997  <PAGE>