UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549
                                 FORM 10-Q
(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1997
     
                                    OR

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

For the transition period from __________________ to ___________________

Comission 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 9,082,035 shares of the registrant's common stock outstanding as
of November 7, 1997.

                JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                                   INDEX




Part I.  Financial Information

Item 1.  Financial Statements
         Condensed Consolidated Balance Sheets -
           September 30, 1997 and June 30, 1997     
         Condensed Consolidated Statements of Income - 
           Three Months Ended September 30, 1997 and 1996         
         Condensed Consolidated Statement of Stockholders'
           Equity - Three Months Ended September 30, 1997        
         Condensed Consolidated Statements of Cash Flows - 
           Three Months Ended September 30, 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>

                                         September 30,    June 30,
       ASSETS                                1997           1997    
       ______                            ____________     ________
<S>                                      <C>              <C>
Current assets: 
  Cash and cash equivalents               $ 49,712        $ 47,945
  Prepaid expenses                           1,384           1,438
  Other current assets                       1,899           1,728
                                          ________        ________
    Total current assets                    52,995          51,111
                                          ________        ________
Property and equipment, at cost:
  Land and buildings                         1,535           1,535
  Gaming equipment                          29,072          28,202
  Other equipment                            4,651           4,595
  Leasehold improvements                       339             339
                                          ________        ________
                                            35,597          34,671
  Less accumulated depreciation            (21,805)        (21,582)
                                          ________        ________
                                            13,792          13,089
Lease acquisition costs and other
  intangible assets, net of 
  accumulated amortization of 
  $4,028 and $6,198                          2,781           3,596
  
Goodwill, net of accumulated 
  amortization of $2,588 and $2,547          4,033           4,074

Lease and other security deposits            3,044           2,959

Other non-current assets                       380             438
                                          ________        ________
    Total assets                          $ 77,025        $ 75,267
                                          ========        ========

</TABLE>









See Notes to Condensed Consolidated Financial Statements.<PAGE>
                 JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS 
                 (Dollars in thousands, except share data)
                                (Concluded)

<TABLE>

                                         September 30,    June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY        1997            1997   
____________________________________     ____________     ________
<S>                                      <C>              <C>
Current liabilities:
  Accounts payable                         $   720         $   375
  Other current liabilities                  4,379           4,407
                                           _______         _______
      Total current liabilities              5,099           4,782

Deferred rent                                2,215           2,510
Deferred income tax                            797             633
Other liabilities                               61              61
                                           _______         _______
      Total liabilities                      8,172           7,986
                                           _______         _______

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; 9,823,993 shares issued              98              98
  Additional paid-in capital                66,033          66,033 
  Retained earnings                         10,825           9,253
  Less 741,958 shares of common stock 
    in treasury, at cost                    (8,103)         (8,103)
                                           _______         _______
      Total stockholders' equity            68,853          67,281
                                           _______         _______
      Total liabilities and 
        stockholders' equity               $77,025         $75,267
                                           =======         =======


</TABLE>







See Notes to Condensed Consolidated Financial Statements.<PAGE>
                JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
               (Dollars in thousands, except per share data)

<TABLE>

                                                   1997     1996          
                                                 _______   _______
<S>                                              <C>       <C>
Revenues:
  Route operations                               $21,918   $21,167
  Casino operations                                  749       788
                                                 _______   _______
     Totals                                       22,667    21,955
                                                 _______   _______
Costs and expenses:
  Route operations                                18,291    16,977
  Casino operations                                  727       753
  Amortization                                       276       431
  Depreciation                                       868       888
  General and administrative                         925       983
                                                 _______   _______
     Totals                                       21,087    20,032
                                                 _______   _______
Operating income                                   1,580     1,923
                                                 _______   _______
Other income:
  Interest and other income                          573       356
                                                 _______   _______
     Totals                                          573       356
                                                 _______   _______
Income before income tax                           2,153     2,279
                                                 _______   _______

Provision for Federal income tax:
  Current                                            417       706
  Deferred                                           164             
                                                 _______   _______
     Totals                                          581       706
                                                 _______   _______

Net income                                       $ 1,572   $ 1,573
                                                 =======   =======
Earnings per common share                        $   .17   $   .17
                                                 =======   =======
Cash dividends per share of common stock         $  -      $   .08
                                                 =======   =======
</TABLE>




See Notes to Condensed Consolidated Financial Statements.
<PAGE>
                JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                   THREE MONTHS ENDED SEPTEMBER 30, 1997
                     (Dollars and shares in thousands)
<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,
1997      9,824   $98     $66,033   $ 9,253    (742) $(8,103)    $67,281

Net
income                                1,572                        1,572
          _____   ___     _______   _______    ____  _______     _______

Balance
September
30, 1997  9,824   $98     $66,033   $10,825    (742) $(8,103)    $68,853
          =====   ===     =======   =======    ====  =======     =======

</TABLE>





























See Notes to Condensed Consolidated Financial Statements.<PAGE>
                    JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                             (Dollars in thousands)


<TABLE>
                                                      1997       1996  
                                                    _______     _______
<S>                                                 <C>         <C>
Operating activities:
  Net income                                        $ 1,572     $ 1,573
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization                   1,144       1,319
      Deferred Federal income tax                       164          
      Increase (decrease) from changes in:
        Prepaid expenses and other current assets      (117)        159
        Other non-current assets                       (105)         59     
        Accounts payable                                345         (17)
        Other current liabilities                       (28)        253
        Deferred rent                                   306        (139)
                                                    _______     _______
          Net cash provided by operating activities   3,281       3,207
                                                    _______     _______
Investing activities:
  Net proceeds from location operators                   73          45
  Proceeds from sales of subsidiary and property          4       1,270
  Purchases of property and equipment                (1,570)       (693)
  Increase in lease acquisition costs and other     
    intangible assets                                   (21)        (60)
                                                    _______     _______
          Net cash (used in) provided by investing
            activities                               (1,514)        562
                                                    _______     _______
Financing activities:
  Proceeds from issuance of common stock                            184
  Dividends paid                                                   (748)
                                                    _______     _______
          Net cash used in financing activities                    (564)
                                                    _______     _______

Net increase in cash and cash equivalents             1,767       3,205
Cash and cash equivalents at beginning of period     47,945      39,024
                                                    _______     _______
Cash and cash equivalents at end of period          $49,712     $42,229
                                                    =======     =======

Supplemental disclosures of cash flow data:
  Cash paid during the period for:
    Federal income tax                              $   400     $  -

</TABLE>


See Notes to Condensed Consolidated Financial Statements.<PAGE>
                JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
           NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General:
             The accompanying unaudited condensed consolidated financial
             statements included herein have been prepared by Jackpot
             pursuant to the rules and regulations of the Securities and
             Exchange Commission.  Certain information and footnote
             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 management believes that the disclosures
             are adequate to make the information presented not misleading.

             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
             September 30, 1997 and the results of its operations and cash
             flows for the three months ended September 30, 1997 and 1996.
             The earnings for the three months ended September 30, 1997 and 
             1996 are not necessarily indicative of results for a full
             year. Information included in the condensed consolidated
             balance sheet as of June 30, 1997 has been derived from
             Jackpot's Annual Report to the Securities and Exchange
             Commission on Form 10-K for the fiscal year ended
             June 30, 1997 (the "1997 Form 10-K").  These unaudited
             condensed consolidated financial statements should be read in
             conjunction with the consolidated financial statements and
             disclosures included in the 1997 Form 10-K. 

             In February 1997, the Financial Accounting Standards Board
             (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. 

             In February 1997, the FASB issued Statement of Financial
             Accounting Standards No. 129, "Disclosure of Information about
             Capital Structure" ("SFAS 129"), which is effective for
             periods ending after December 15, 1997.  SFAS 129 establishes  
             standards for disclosing information about an entity's capital
             structure. Management intends to comply with the disclosure
             requirements of this statement.

             In June 1997, the FASB issued Statement of Financial
             Accounting Standards No. 130, "Reporting Comprehensive Income"
             ("SFAS 130"), which is effective for fiscal years beginning
             after December 15, 1997.  SFAS 130 requires companies
             to classify items of other comprehensive income by their
             nature in a financial statement and display the accumulated
             balance of other comprehensive income separately from retained
             earnings and additional paid-in capital in the equity section
             of a statement of financial position.  Management does not
             believe this statement will have a material impact on the
             consolidated financial statements.

             In June 1997, the FASB issued Statement of Financial
             Accounting Standards No. 131, "Disclosure About Segments of an
             Enterprise and Related Information"("SFAS 131"), which is
             effective for fiscal years beginning after December 15, 1997. 
             SFAS 131 establishes additional standards for segment
             reporting in the financial statements.  Management has not
             determined the extent of the disclosure required by SFAS 131.

Note 2 - Earnings per share:
             Earnings per share for the three months ended September 30,
             1997 and 1996 are computed by dividing net income by the
             weighted average number of common shares outstanding.  Stock
             options have been excluded from the computations because they
             had no effect on earnings per share.  

Note 3 - Stockholders' equity:
           The 1992 Incentive and Non-qualified Stock Option Plan:
             On September 30, 1997, the exercise price of the June 30,
             1997 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 $11.50 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 5 of Notes to Consolidated Financial
             Statements in the 1997 Form 10-K for further information
             regarding the 1992 Plan and option grants.

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 had 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.  All discovery has been completed and the parties
             have filed cross motions for summary judgment.  The Court has
             not yet ruled upon such motions.  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.

<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 three months ended
September 30, 1997 (the "1997 three months"), consisted of the cash flows
from operating activities and its available cash and cash equivalents
which, at June 30, 1997, was $47.9 million and at September 30, 1997 was
$49.7 million.  Net cash provided by operating activities for the 1997
three months was $3.3 million.  

     Net cash used in investing activities for the 1997 three months
increased $2.1 million, from $.6 million provided by investing activities
for the three months ended September 30, 1996 (the "1996 three months") to
$1.5 million used in investing activities for the 1997 three months.  The
1996 three months includes the receipt of $1.3 million from the sale of
Jackpot's interest in a casino subsidiary.  Cash used in investing
activities for purchases of property and equipment increased $.9
million, from $.7 million for the 1996 three months to $1.6 million for the
1997 three months. Primarily, as a result of the transactions described
above, net cash used in investing activities increased by $2.1 million.

     Liquidity:

     At September 30, 1997, Jackpot had cash and cash equivalents of $49.7
million, an increase of $1.8 million from June 30, 1997.  Jackpot's working
capital increased to $47.9 million at September 30, 1997, from $46.3
million at June 30, 1997 primarily as a result of the activities described
above.  

     On October 29, 1996, Jackpot's Board of Directors authorized Jackpot's
management to repurchase up to 500,000 shares of its common stock, from
time to time, at prevailing market prices.  Since such authorization,
Jackpot has repurchased 283,771 shares of common stock at a cost of
approximately $2.8 million.

     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.  All discovery has been completed and the parties
have filed cross motions for summary judgment.  The Court has not yet ruled
upon such motions. 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 7 of
Notes to Consolidated Financial Statements in the 1997 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, 1998.  With respect to planned capital
expenditures, management anticipates Jackpot will purchase approximately
$6.9 million of property and equipment, exclusive of business
acquisitions, if any, in the remainder of fiscal 1998 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.

     Recently Issued Accounting Standards:

     In February 1997, the Financial Accounting Standards Board (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.

     In February 1997, the FASB issued Statement of Financial Accounting
Standards No. 129,"Disclosure of Information about Capital Structure"
("SFAS 129"), which is effective for periods ending after December 15,
1997.  SFAS 129 establishes standards for disclosing information about
an entity's capital structure.  Management intends to comply with the
disclosure requirements of this statement.

     In June 1997, the FASB issued Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130"), which is
effective for fiscal years beginning after December 15, 1997.  SFAS 130
requires companies to classify items of other comprehensive income by
their nature in a financial statement and display the accumulated balance
of other comprehensive income separately from retained earnings and
additional paid-in capital in the equity section of a statement
of financial position.  Management does not believe this statement will
have a material impact on the consolidated financial statements.

     In June 1997, the FASB issued Statement of Financial Accounting
Standards No. 131, "Disclosure About Segments of an Enterprise and Related
Information" ("SFAS 131"), which is effective for fiscal years beginning
after December 15, 1997.  SFAS 131 establishes additional standards for
segment reporting in the financial statements.  Management has not determined
the extent of the disclosure required by SFAS 131.




Results of Operations
_____________________

     Revenues:

     Total revenues for the 1997 three months increased $.7 million, from
$22.0 million for the 1996 three months to $22.7 million for the 1997 three
months.  The increase in total revenues was attributable to an increase of
$.7 million (from $21.2 million for the 1996 three months to $21.9 million
for the 1997 three months) in gaming machine route operations ("route
operations") revenues.

     The increase in route operations revenues of $.7 million 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 $1.9 million, existing locations generated
additional revenues of $1.2 million and terminated locations had generated
revenues of $2.4 million for the 1996 three months.  The loss of revenues
generated at terminated locations was primarily due to the expiration of
Jackpot's right to operate at the locations of Warehouse Markets, Inc., a
significant chain store customer, on June 30, 1997.  Despite a long-term
relationship with such customer, Jackpot was not willing to agree with the
terms sought for a contract extension, which management believed were
uneconomic.  The agreement involved the operation of approximately 272
gaming machines in 16 locations.  In fiscal 1997, Jackpot generated
approximately 6% of its total revenues and a significant amount of
operating income from operations at such customer's locations.  For
additional information regarding Jackpot's operations, see Item 1 -
Business - Gaming Machine Route Operations in the 1997 Form 10-K.

     Route operations revenues attributable to fixed payment leases and
revenue sharing contracts for the 1997 and 1996 three months are
summarized below (dollars in thousands):

<TABLE>
                                          1997               1996          
                                   ___________________  __________________
                                            Percent             Percent
                                            of route            of route
                                            operations          operations
                                   Amount   revenues    Amount  revenues  
                                   _______  __________  _______ __________
<S>                                <C>      <C>         <C>     <C>
Route operations:
  Fixed payment leases             $16,444     75.0%    $13,804    65.2%
  Revenue sharing contracts          5,474     25.0       7,363    34.8    
                                   _______    _____     _______   _____    
      Totals                       $21,918    100.0%    $21,167   100.0%
                                   =======    =====     =======   =====

</TABLE>

     The decrease in route operations revenues attributable to revenue
sharing contracts of $1.9 million (from $7.4 million for the 1996 three
months to $5.5 million for the 1997 three months) was principally due to
the loss of the significant customer previously discussed.



     Costs and expenses:

     Route operations expenses for the 1997 three months increased $1.3
million (from $17.0 million for the 1996 three months to $18.3 million for
the 1997 three months) and, as a percentage of route operations revenues,
increased to 83.5% for the 1997 three months from 80.2% for the 1996 three
months.  Such increases were principally attributable to an increase in
location rent.  With respect to location rent, which is the single largest
route operations expense, Jackpot entered into agreements for long-term
extensions with four of its largest retail chain store customers during
1997.  Such agreements, two of which were not due to expire on June 30,
1997, became effective July 1, 1997.  A very competitive pricing
environment caused Jackpot to offer significant increases in location rent
over the existing agreements.  

     The increase in route operations expenses of $1.3 million primarily
resulted from a combination of an increase of $1.7 million in location
rent for locations of existing chain store customers, which was related to
the four chain store renewals, an increase of $.7 million in location rent
for new locations of existing chain store customers, net of a decrease of
$.9 million in location rent for lost chain store customers and a decrease
of $.2 million in location rent associated with other revenue sharing
contracts.  The total for all other route operations costs and expenses
for the 1997 three months approximated the aggregate amount for the 1996
three months.  For a further description of the Company's lease and
license agreements, see Item 1 - Business - Gaming Machine Route
Operations and Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations - Overview in the 1997 Form 10-K.

     Amortization expense for the 1997 three months decreased
approximately $.1 million, from $.4 million for the 1996 three months to
$.3 million for the 1997 three months.  The decrease in amortization
expense for the 1997 three months was attributable to reductions in
amortization expense related to certain lease acquisition costs. 
Depreciation expense for the 1997 three months, compared to the 1996 three
months, remained constant at $.9 million.

     General and administrative expense for the 1997 three months
decreased approximately $.1 million, from $1.0 million for the 1996 three
months to $.9 million for the 1997 three months.

     Other income:

     Other income for the 1997 three months increased approximately
$.2 million (from $.4 million for the 1996 three months to $.6 million for
the 1997 three months) primarily due to the increase in interest income
earned from cash equivalents and to the receipt of approximately $.1
million for liquidated damages from the potential purchaser of Jackpot's
remaining two casinos.  Jackpot received such amount as a result of the
potential purchaser's withdrawal of his gaming application with the Nevada
Gaming Authorities.

     Other:

     The effective tax rate for the 1997 three months was 27%, which was
lower than the 31% rate for the 1996 three months, primarily because of
the increase in tax benefits from tax-exempt interest income.

     General:

     Operating income for the 1997 three months decreased $.3 million,
from $1.9 million for the 1996 three months to $1.6 million for the 1997
three months.  The decrease in operating income for the 1997 three months
resulted primarily from a decrease in the route operations operating
margin of $.6 million, net of an overall decrease in amortization,
depreciation and general and administrative expenses of $.3 million.  The
decrease in the route operations operating margin of $.6 million (from
$4.2 million for the 1996 three months to $3.6 million for the 1997 three
months) was principally due to the increase in location rent expense
for existing locations as previously described.

     While net income and earnings per share for the 1997 three months,
compared to the 1996 three months, remained constant at $1.6 million and
$.17, respectively, due to the factors described above, the Company's
results of operations for the remainder of fiscal 1998 will continue to be
adversely affected compared to the prior year periods due to the intensely
competitive market conditions prevailing for gaming machine route
operators, the loss of the significant chain store customer described
above and the above referenced increases in location rent.

     However, management believes that the following may lessen the
adverse effects described above:  (i) increased revenues at existing
locations as a result of the maturing of several recently opened
new chain store locations, (ii) additional revenues from new locations
scheduled to be opened by Jackpot's largest chain store customers, and
(iii) increased revenues at existing locations due to capital improvements
or replacements of gaming machines.  The Company experienced positive
results from (i) and (iii) during the 1997 three months.  While management
believes that these events will occur, they are, in part, based upon factors
that are outside the Company's control.  Accordingly, no assurance can be
given that such benefits will occur, or occur at sufficient levels to lessen
the adverse effects described above.

     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 months ended September 30, 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 September 30, 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:  November 12, 1997