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 December 31, 1996

                                        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 9,131,259 shares of the registrant's common stock outstanding as 
of January 31, 1997.<PAGE>
    JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                                      INDEX


                                                                 


Part I.      Financial Information

Item 1.      Financial Statements
               Condensed Consolidated Balance Sheets -
                 December 31, 1996 and June 30, 1996             
               Condensed Consolidated Statements of Income - 
                 Three and Six Months Ended December 31, 1996 and 1995
               Condensed Consolidated Statement of Stockholders' 
                 Equity - Six Months Ended December 31, 1996            
               Condensed Consolidated Statements of Cash  Flows - 
                 Six Months Ended December 31, 1996 and 1995     
               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 4.      Submission of Matters to a Vote of Stockholders      

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

<TABLE>

                                    December 31,           June 30,
        ASSETS                          1996                 1996    
        ______                      ___________            ________
<S>                                 <C>                    <C>
Current assets: 
  Cash and cash equivalents           $ 43,310             $ 39,024
  Prepaid expenses                       1,280                1,740
  Other current assets                   1,869                3,515
                                      ________             ________
    Total current assets                46,459               44,279
                                      ________             ________

Property and equipment, at cost:
  Land and buildings                     1,535                1,535
  Gaming equipment                      27,750               27,839
  Other equipment                        4,558                4,282
  Leasehold improvements                   338                  336
                                      ________             ________    
                                        34,181               33,992
  Less accumulated depreciation        (21,294)             (20,697)
                                      ________             ________    
                                        12,887               13,295
Lease acquisition costs and other
  intangible assets, net of 
  accumulated amortization of 
  $5,771 and $5,142                      4,097                4,749
  
Goodwill, net of accumulated 
  amortization of $2,465 and $2,382      4,157                4,240

Lease and other security deposits        3,436                3,436

Other non-current assets                   379                  743
                                      ________             ________
    Total assets                      $ 71,415             $ 70,742
                                      ========             ========
</TABLE>


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

                                             December 31,        June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY             1996              1996   
____________________________________         ____________        ________
<S>                                          <C>                 <C>
Current liabilities:
  Accounts payable                             $   492           $   504
  Other current liabilities                      3,168             3,439
                                               _______           _______
      Total current liabilities                  3,660             3,943

Deferred rent                                    2,748             3,025
Accrued pension and other liabilities              141               279
                                               _______           _______
      Total liabilities                          6,549             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                              4,920             2,905
  Less 378,883 and 293,748 shares
    of common stock in treasury, at cost        (4,472)           (3,635)
                                               _______           _______
      Total stockholders' equity                64,866            63,495
      Total liabilities and                    _______           _______
         stockholders' equity                  $71,415           $70,742
                                               =======           =======


</TABLE>


See Notes to Condensed Consolidated Financial Statements.
<PAGE>
                    JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               THREE AND SIX MONTHS ENDED DECEMBER 31, 1996 AND 1995
                   (Dollars in thousands, except per share data)
                                    (Unaudited)
<TABLE>
                                 Three Months Ended          Six Months Ended
                                     December 31,               December 31,    
                                 __________________          ________________
                                  1996       1995             1996     1995 
                                 _______    _______          _______  _______
<S>                              <C>        <C>              <C>      <C>
Revenues:                                              
  Route operations               $21,766    $20,448          $42,933  $41,055
  Casino operations                  794      1,936            1,582    4,130
                                 _______    _______          _______  _______
      Totals                      22,560     22,384           44,515   45,185
                                 _______    _______          _______  _______
Costs and expenses:                                        
  Route operations                17,182     15,569           34,159   31,345
  Casino operations                  714      1,729            1,467    3,492
  Amortization                       431        549              862    1,111
  Depreciation                       858      1,051            1,746    2,295
  General and administrative       1,012      1,043            1,995    2,232
                                 _______    _______          _______  _______
      Totals                      20,197     19,941           40,229   40,475
                                 _______    _______          _______  _______

Operating income                   2,363      2,443            4,286    4,710
                                 _______    _______          _______  _______
Other income (expense):
  Interest and other income          447        319              803      714
  Interest expense                              (10)                      (22)
                                 _______    _______          _______  _______
      Totals                         447        309              803      692
                                 _______    _______          _______  _______
Income before income tax           2,810      2,752            5,089    5,402
                                 _______    _______          _______  _______

Provision for Federal income tax:
  Current                            872                       1,578          
  Deferred                                      881                     1,729
                                 _______    _______          _______  _______
      Totals                         872        881            1,578    1,729
                                 _______    _______          _______  _______

Net income                       $ 1,938    $ 1,871          $ 3,511  $ 3,673
                                 =======    =======          =======  =======
Earnings per common share        $   .21    $   .20          $   .38  $   .39
                                 =======    =======          =======  =======
Cash dividends per share of
  common stock                   $   .08    $   .08          $   .16  $   .16
                                 =======    =======          =======  =======

</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
                    JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS'EQUITY
                        SIX MONTHS ENDED DECEMBER 31, 1996
             (Dollars and shares in thousands, except per share data)
                                    (Unaudited)
<TABLE>
          
                           Additional                Treasury        Total
             Common Stock   Paid-in    Retained       Stock       Stockholders'
             _____________  Capital    Earnings    _____________     Equity
             Shares Amount                         Shares Amount          
             _____  ______ __________  ________    ______ _______ _____________
<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                                                (85)    (837)       (837)

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

Net
income                                   3,511                          3,511
             _____   ___    _______    _______      ____  _______      _______
                                                          
Balance
December
31, 1996     9,651   $97    $64,321    $ 4,920      (379) $(4,472)    $64,866
             =====   ===    =======    =======      ====  =======     =======


</TABLE>

See Notes to Condensed Consolidated Financial Statements.
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   

                  JACKPOT ENTERPRISES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  SIX MONTHS ENDED DECEMBER 31, 1996 AND 1995
                             (Dollars in thousands)
                                  (Unaudited)
<TABLE>                                                  
                                                  
                                                       1996      1995  
                                                      _______   _______
<S>                                                   <C>       <C>
Operating activities:
  Net income                                          $ 3,511   $ 3,673
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization                     2,608     3,406
      Deferred Federal income tax                                 1,729
      Net loss (gain) on sales and retirements 
        of property and equipment                          13      (166)
      Increase (decrease) from changes in:
        Prepaid expenses and other current assets         191        81
        Other non-current assets                           45      (106)
        Accounts payable                                  (12)     (194)
        Other current liabilities                         275      (693)
        Deferred rent                                    (277)     (247)
        Other liabilities                                            22
                                                      _______   _______
          Net cash provided by operating activities     6,354     7,505
                                                      _______   _______
Investing activities:
  Net proceeds from location operators                    130       122
  Proceeds from sales of subsidiary and property        1,465       500
  Purchases of property and equipment                  (1,390)   (2,405)
  Increase in lease acquisition costs and other                 
    intangible assets                                    (133)     (164)
  Decrease in lease and other security deposits                      40
                                                      _______   _______
          Net cash provided by (used in) investing
            activities                                     72    (1,907)
                                                      _______   _______
Financing activities:
  Repayments of long-term debt                                     (630)
  Proceeds from issuance of common stock                  193        23
  Repurchases of common stock                            (837)
  Dividends paid                                       (1,496)   (1,482)
                                                      _______   _______
          Net cash used in financing activities        (2,140)   (2,089)
                                                      _______   _______
Net increase in cash and cash equivalents               4,286     3,509
Cash and cash equivalents at beginning of period       39,024    32,916
                                                      _______   _______
Cash and cash equivalents at end of period            $43,310   $36,425
                                                      =======   =======
Supplemental disclosures of cash flow data:
  Cash paid during the period for:
    Interest                                          $     -   $    22
    Federal income tax                                $   800   $     -

</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 December 31, 1996, and the results of its operations 
             for the three and six months ended December 31, 1996 and 
             1995 and its cash flows for the six months ended December 31, 
             1996 and 1995.  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 
             six months ended December 31, 1996 and 1995 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 proforma 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.


<PAGE>
Note 2 - Earnings per share:
             Earnings per share for the three and six months ended December 
             31, 1996 and 1995 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 six months ended December 31, 1996, 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 85,135 and 140,601 shares of its common stock 
             at the market price on the date of purchase for a total cost of
             approximately $837,000 and $1,389,000, or an average of $9.83 
             and $9.88 per share during the six months ended December 31, 
             1996 and one month ended January 31, 1997, respectively.  
             Purchases during the six months ended December 31, 1996 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 are directors and indirect 
             beneficial owners of an aggregate of more than 51% of the common 
             stock of such insurance company.

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.

<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 six months ended December 31, 
1996 (the "1996 six 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 December 31, 1996 
approximated $43.3 million. 
    
    Net cash provided by operating activities in the 1996 six months was 
$6.4 million.  Net cash provided by investing activities in the 1996 six 
months was approximately $.1 million which included cash received of 
approximately $1.6 million and cash used of approximately $1.5 million.  
The $1.6 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 $1.5 million of cash used was primarily for the purchase of property 
and equipment.

    Net cash used in financing activities in the 1996 six months was 
approximately $2.1 million which resulted from the payments of dividends 
and repurchases of common stock of approximately $1.5 million and $.8 
million, respectively, net of approximately $.2 million of proceeds from 
the issuance of common stock upon the exercise of stock options.

    Liquidity:

    At December 31, 1996, Jackpot had cash and cash equivalents of 
approximately $43.3 million, an increase of approximately $4.3 million 
from June 30, 1996.  Jackpot's working capital and current ratio also 
increased to approximately $42.8 million and 12.7 to 1, respectively, 
at December 31, 1996, 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 $3.7 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.  

<PAGE>
Results of Operations
______________________
    
    Revenues:

    Total revenues in the three months ended December 31, 1996 (the "1996 
three months") increased approximately $.2 million (from $22.4 million in
the three months ended December 31, 1995 (the "1995 three months") to $22.6 
million in the 1996 three months), while total revenues in the 1996 six months 
decreased approximately $.7 million (from $45.2 million in the six months 
ended December 31, 1995 (the "1995 six months") to $44.5 million in the 1996 
six months).  The increase in total revenues of $.2 million in the 1996 
three months was the net result of an increase of $1.3 million (from $20.5 
million in the 1995 three months to $21.8 million in the 1996 three months) 
in gaming machine route operations ("route operations") revenues and a 
decrease of $1.1 million (from $1.9 million in the 1995 three months to $.8 
million in the 1996 three months) in casino operations revenues.  The 
decrease in total revenues of $.7 million in the 1996 six months was the 
net result of an increase of $1.8 million (from $41.1 million in the 1995 
six months to $42.9 million in the 1996 six months) in route operations 
revenues and a decrease of $2.5 million (from $4.1 million in the 1995 six
months to $1.6 million in the 1996 six months) in casino operations revenues.

    The increases in route operations revenues in the 1996 three months and 
1996 six months of $1.3 million and $1.8 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 $1.2 million and $2.4 million and 
existing locations generated additional revenues of $1.0 million and $1.3 
million in the 1996 three months and 1996 six months, respectively.  
Terminated locations had generated revenues of $.9 million and $1.9 million 
in the 1995 three months and 1995 six months, respectively. 
<PAGE>
   The amount of route operations revenues attributable to fixed payment 
leases and revenue sharing contracts for the three and six months ended
December 31, 1996 and 1995 are summarized below (dollars in thousands):
<TABLE>

                                         Three Months Ended December 31,         
                                   ___________________________________________
                                         1996                  1995    
                                   _____________________    __________________ 
                                              Percent               Percent
                                              of route              of route
                                              operations            operations
                                   Amount     revenues      Amount  revenues  
                                   _______    __________    _______ __________
<S>                                <C>        <C>           <C>     <C>
Route operations:
  Fixed payment leases             $14,514       66.7%      $13,072    63.9%
  Revenue sharing contracts          7,252       33.3         7,376    36.1
                                   _______     ______       _______   _____
    Totals                         $21,766      100.0%      $20,448   100.0%
                                   =======     ======       =======   =====

                                        Six Months Ended December 31,         
                                   ___________________________________________
                                         1996                  1995    
                                   _____________________    __________________
                                              Percent               Percent
                                              of route              of route
                                              operations            operations
                                   Amount     revenues      Amount  revenues  
                                   _______    __________    _______ __________
Route operations:
  Fixed payment leases             $28,318       66.0%      $25,912    63.1%
  Revenue sharing contracts         14,615       34.0        15,143    36.9
                                   _______      _____       _______   _____
    Totals                         $42,933      100.0%      $41,055   100.0%
                                   =======      =====       =======   =====
</TABLE>  

    The decreases in casino operations revenues in the 1996 three months and
1996 six 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 1995 three months and 1995 six
months included revenues of $1.2 million and $2.4 million, respectively, which 
were generated at these two locations.

    Costs and expenses:

    Route operations expenses in the 1996 three months and 1996 six months
increased approximately $1.6 million (from $15.6 million in the 1995 three 
months to $17.2 million in the 1996 three months) and $2.8 million (from
$31.4 million in the 1995 six months to $34.2 million in the 1996 six months) 
and, as a percentage of route operations revenues, increased to 78.9% and 
79.6% in the 1996 three months and 1996 six months, respectively, from 76.1% 
and 76.3% in the 1995 three months and 1995 six months, respectively.  The 
increases of $1.6 million and $2.8 million over the respective 1995 periods 
were attributable to increases of $.8 million and $1.6 million, respectively, 
in location rent, increases of $.1 million and $.2 million, respectively, in
payroll costs, increases of $.3 million and $.5 million, respectively, in 
workers' compensation and group health costs and increases of $.4 million
and $.5 million respectively, in other route operations expenses.  Route 
operations expenses increased as a percentage of route operations revenues 
in the respective 1996 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.

    With respect to location rent, which is the single largest route operations
expense,  agreements with three of Jackpot's largest six retail chain store 
customers expire on June 30, 1997.  The loss or nonrenewal of any one of these 
agreements could have a material adverse effect on the Company's future results
of operations.  While the Company is actively seeking to renew these 
agreements, there is no assurance that the Company will be able to renew 
or extend such agreements or that these agreements will be renewed upon 
terms that Jackpot will find acceptable.  If such agreements are renewed, 
management anticipates that lease costs may increase over the existing 
agreements.  If anticipated future lease costs are not offset by increases
in revenues, or by reductions in operating costs, the renewal of these 
agreements could have an adverse effect on the Company's future 
results of operations.  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.
 
    Casino operations expenses in the 1996 three months and 1996 six months
decreased approximately $1.0 million (from $1.7 million in the 1995 three 
months to $.7 million in the 1996 three months) and approximately $2.0 million
(from $3.5 million in the 1995 six months to $1.5 million in the 1996 six 
months).  With respect to casino operations expenses, the 1995 three months 
and 1995 six months included approximately $1.0 million and $2.1 million of 
costs and expenses incurred by the Nugget and the casino operations at the 
Debbie Reynolds' Hotel and Casino.

    Amortization expense in the 1996 three months and 1996 six months 
decreased approximately $.1 million (from $.5 million in the 1995 three
months to $.4 million in the 1996 three months) and approximately $.2 million 
(from $1.1 million in the 1995 six months to $.9 million in the 1996 six 
months).  The decrease in amortization expense in the respective 1996 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 1996 three months and 1996 six 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 1996 three months and 1996 six months 
decreased approximately $.2 million (from $1.1 million in the 1995 three
months to $.9 million in the 1996 three months) and $.6 million (from $2.3 
million in the 1995 six months to $1.7 million in the 1996 six months).  The 
decrease in depreciation expense in the respective 1996 periods 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 1996 three months remained
constant at approximately $1.0 million compared to the 1995 three months, 
and in the 1996 six months decreased approximately $.2 million (from $2.2
million in the 1995 six months to $2.0 million in the 1996 six months).  
The decrease in general and administrative expenses in the 1996 six months 
was due primarily to decreases in payroll and other compensation related 
costs.
  
    Other:

    The effective tax rate in the 1996 three months and 1996 six months was 
31%, which was slightly lower than the 32% rate in the 1995 three months
and 1995 six months primarily because of the increase in tax benefits from
tax-exempt interest income.

    General:

    Operating income in the 1996 three months remained constant at 
approximately $2.4 million compared to the 1995 three months, and decreased
approximately $.4 million (from $4.7 million in the 1995 six months to $4.3 
million in the 1996 six months). The decrease in operating income in the 
1996 six months resulted primarily from decreases in the operating margin 
of the route operations and casino operations of $.9 million and $.5 million, 
respectively, net of an overall decrease in amortization, depreciation and 
general and administrative expenses of approximately $1.0 million.  The 
decrease of $.9 million (from $9.7 million in the 1995 six months to $8.8 
million in the 1996 six 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 $.6 million in the 1995 six 
months to $.1 million in the 1996 six 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 1996 three months remained constant at $1.9 million
compared to the 1995 three months, and decreased approximately $.2 million 
(from $3.7 million in the 1995 six months to $3.5 million in the 1996 six
months) due to the results of operations described above.  Earnings per share 
in the 1996 three months and 1996 six months were $.21 and $.38 per share, 
respectively, compared to earnings per share in the 1995 three months and 
1995 six months of $.20 and $.39, 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 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 largest six retail chain store customers, 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 4.  Submission of Matters to a Vote of Stockholders

           (a)  Jackpot's 1996 Annual Meeting of Stockholders was held on
                December 12, 1996. 
                
           (b)  Proxies were solicited by Jackpot's management without
                opposition and all nominees were elected to hold office 
                until the next annual meeting as described in the Proxy 
                Statement dated October 25, 1996.

           (c)  No other matters were voted upon except for the proposal to
                ratify the appointment of Jackpot's independent auditors.  
                The stockholders voted 8,433,096 shares "FOR", 81,877 shares 
                "AGAINST" and 31,733 shares "ABSTAINING" to approve the 
                appointment of Deloitte & Touche LLP as Jackpot's independent 
                auditors for the fiscal year ending June 30, 1997.

Item 6.  Exhibits and Reports on Form 8-K

           (a)  Exhibits:

                Exhibit 11.1 - Computation of Earnings Per Common Share for 
                the three and six months ended December 31, 1996 and 1995.
    
                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 December 31, 1996.

            
                                       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:  February 13, 1997  <PAGE>