EXHIBIT 11.1

                  JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES 
                   COMPUTATION OF EARNINGS PER COMMON SHARE 
              THREE AND NINE MONTHS ENDED MARCH 31, 1997 and 1996
            (Dollars and shares 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>
Primary:                             
  Earnings:                      
    Net income                       $1,971     $ 1,842     $5,482     $ 5,515
                                     ======     =======     ======     =======
  Shares:
    Weighted average number 
      of common shares 
      outstanding (A)                 9,172       9,305      9,287       9,303
                                     ======     =======     ======     =======

Primary earnings per share           $  .21     $   .20     $  .59     $   .59
                                     ======     =======     ======     =======
Fully diluted (B):
  Earnings:
    Net income                       $1,971     $ 1,842     $5,482     $ 5,515
    Add after-tax interest, net (C)      44         129        138         867
                                     ______     _______     ______     _______
    Net income, as adjusted          $2,015     $ 1,971     $5,620     $ 6,382
                                     ======     =======     ======     =======
  Shares:
    Weighted average number of 
      common shares outstanding       9,172       9,305      9,287       9,303
    Common shares issuable upon 
      exercise of stock options 
      and warrants, net of common
      shares assumed to be 
      repurchased from the proceeds 
      using the greater of the
      average market price for the 
      period or the period-end price    267         799        271       1,588
                                     ______     _______     ______     _______
    Weighted average number of common 
      shares and common share 
      equivalents outstanding, 
      as adjusted                     9,439      10,104      9,558      10,891
                                     ======     =======     ======     =======
Fully diluted earnings per share     $  .21     $   .20     $  .59     $   .59
                                     ======     =======     ======     ======= 

</TABLE>

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

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

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