<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                   FORM 10-QSB

[X]     Quarterly  Report  pursuant  to  Section  13  or 15(d) of the Securities
        Exchange  Act  of  1934

For  the  quarterly  period  ended  April  30,  2003.

[ ]     Transition  Report  pursuant  to Section 13 or 15(d) of the Securities
        Exchange  Act  of  1934

        For  the  transition  period  from  __________  to  __________

        Commission  File  Number  000-20685

                             AMERICAN WAGERING, INC.
                             -----------------------
        (Exact name of Small Business Issuer as specified in its charter)

Nevada                                              88-0344658
------                                              ----------
(State  or other jurisdiction of                    (IRS Employer
incorporation)                                      Identification  No.)

                    675 Grier Drive, Las Vegas, Nevada 89119
                    (Address of principal executive offices)

                                  702-735-0101
                                  ------------
                           (Issuer's telephone number)
                           ---------------------------

        _________________________________________________________________
     (Former name, former address and former fiscal year if changed since last
                                     report)


Check  whether  the issuer (1) 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 issuer was required to file such
reports),  and  (2) has been subject to such filing requirements for the past 90
days:
[X]  Yes    [  ]  No

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest practicable date:  7,836,846 shares of Common Stock as
of  June  1,  2003.

Transitional  Small  Business  Disclosure Format (check one):  Yes [  ]   No [X]






<PAGE>


                    AMERICAN WAGERING, INC. AND SUBSIDIARIES
                                TABLE OF CONTENTS

PART  I  -  FINANCIAL  INFORMATION                                         3
  Item  1.      Financial  Statements                                      3
             CONSOLIDATED  BALANCE  SHEETS                                 3
             CONSOLIDATED  STATEMENT  OF  OPERATIONS                       4
             CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS                     5
             NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS                6
  Item  2.      Management's  Discussion  and  Analysis of Financial
                Condition and Results of Operations                        9
  Item  3.      Controls and Procedures                                   11
PART  II  -  OTHER  INFORMATION                                           13
  Item  1.      Legal  Proceedings                                        13
  Item  2.      Changes  in  Securities  and  Use  of  Proceeds           15
  Item  3.      Defaults Upon Senior Securities                           15
  Item  4.      Submission of Matters to a Vote of Security Holders       15
  Item  5.      Other  Information                                        15
  Item  6.      Exhibits  and  Reports  on  Form  8-K.                    15

                                       2

<PAGE>


                         PART I - FINANCIAL INFORMATION

Item  1.          Financial  Statements


                             AMERICAN WAGERING, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
<TABLE>
<CAPTION>


ASSETS                                                              2003            2002
                                                               ----------------------------
<S>                                                            <C>            <C>
CURRENT ASSETS
   Cash                                                        $  2,937,984   $  4,329,654
   Restricted deposits                                            1,103,074        176,837
   Accounts receivable, net of allowance for
    doubtful accounts
      of $32,750                                                    667,557        542,493
   Inventories                                                      358,182        424,482
   Deferred tax asset, net                                          440,481        440,481
   Prepaid expenses and other current assets                        255,291        177,176
                                                               ----------------------------

                                                                  5,762,569      6,091,123
PROPERTY AND EQUIPMENT, net                                       3,068,409      3,113,766
GOODWILL                                                            103,725        103,725
OTHER ASSETS                                                        238,872        303,083
                                                               ----------------------------
                                                               $  9,173,575   $  9,611,697
                                                               ============================


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Current portion of long-term debt                           $    116,776   $    114,669
   Accounts payable                                                 404,172        248,957
   Accrued expenses                                                 749,222        814,332
   Unpaid winning tickets                                           479,125        953,868
   Customer deposits and other current liabilities                  466,099        593,549
   Litigation payable, including accrued interest                 2,297,884      2,295,857
                                                               ----------------------------
                                                                  4,513,278      5,021,232
LONG-TERM DEBT, less current portion                              1,642,744      1,672,547
OTHER LONG-TERM LIABILITIES                                          25,000         25,000
                                                               ----------------------------
                                                                  6,181,022      6,718,779
                                                               ----------------------------
REDEEMABLE SERIES A PREFERRED
STOCK - 3,238 SHARES                                                323,800        323,800
                                                               ----------------------------

STOCKHOLDERS' EQUITY
Series A preferred stock - 10% cumulative; $.01 par value;
   authorized:  25,000,000 shares; issued and outstanding:
   10,924 shares                                                  1,092,400      1,092,400
Common stock - $.01 par value; authorized: 25,000,000 shares;
   issued: 7,897,946 shares                                          78,979         78,979
Additional paid-in capital                                       12,738,789     12,738,889
Deficit                                                         (10,913,922)   (11,013,657)
Less  61,100 common shares in treasury, at cost                    (327,493)      (327,493)
                                                               ----------------------------
                                                                  2,668,753      2,569,118
                                                               ----------------------------
                                                               $  9,173,575   $  9,611,697
                                                               ============================
See notes to consolidated financial statements.
</TABLE>


                                       3

<PAGE>


                             AMERICAN WAGERING, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      FOR THE THREE MONTHS ENDED APRIL 30,
                                   (UNAUDITED)
<TABLE>
<CAPTION>


                                                       2003          2002
REVENUES                                           ------------------------
<S>                                                <C>          <C>
       Wagering                                    $1,414,338   $1,356,904
       Systems                                      1,187,607      917,663
                                                   ------------------------
                                                    2,601,945    2,274,567
                                                   ------------------------
OPERATING COSTS AND EXPENSES
   Direct costs:
       Wagering                                     1,067,254      942,668
       Systems                                        552,347      394,738
                                                   ------------------------
                                                    1,619,601    1,337,406
   Research and development                           229,869      217,257
   Selling, general and administrative                484,159      427,947
   Depreciation and amortization                      140,818      108,301
                                                   ------------------------
                                                    2,474,447    2,090,911
                                                    ------------------------
OPERATING INCOME                                      127,498      183,656
                                                   ------------------------
OTHER INCOME (EXPENSE)
   Interest income                                      4,733       18,164
   Interest expense                                   (38,707)     (39,565)
   Other, net                                          41,122       30,952
                                                   ------------------------
                                                        7,148        9,551
                                                   ------------------------
INCOME FROM CONTINUING OPERATIONS                     134,646      193,207
                                                   ------------------------
DISCONTINUED OPERATIONS
   Loss from operations of discontinued segments           --      (86,274)
                                                   ------------------------

NET INCOME                                         $  134,646      106,933
                                                   ========================

BASIC AND DILUTED INCOME (LOSS) PER SHARE
   Income from continuing operations               $     0.01   $     0.02
   Loss from discontinued operations               $       --   $    (0.01)
   Net income                                      $     0.01   $     0.01


See notes to consolidated financial statements
</TABLE>



                                       4

<PAGE>





                             AMERICAN WAGERING, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      FOR THE THREE MONTHS ENDED APRIL 30,
                                   (UNAUDITED)
<TABLE>
<CAPTION>


                                                              2003         2002
                                                        --------------------------
<S>                                                      <C>           <C>
OPERATING ACTIVITIES
    Net cash used in operating activities                $  (362,057)  $ (563,108)
                                                        --------------------------

INVESTING ACTIVITIES
    Investment in restricted deposits                     (1,028,493)        (587)
    Withdrawals of restricted deposits                       102,256      140,133
    Retirement of assets                                          --           --
    Purchase of property and equipment                       (48,108)     (54,915)
    Proceeds of other assets                                   7,439       20,189
                                                        --------------------------
    Net cash provided by (used in) investing activities     (966,906)     104,820
                                                        --------------------------
FINANCING ACTIVITIES
    Repayment of borrowings                                  (27,696)     (23,070)
    Proceeds from borrowings                                      --       43,335
    Dividends                                                (35,011)     (36,248)
                                                        --------------------------
    Net cash used in financing activities                    (62,707)     (15,983)
                                                        --------------------------
NET DECREASE IN CASH                                      (1,391,670)    (474,271)
CASH AT BEGINNING OF PERIOD                                4,329,654    3,618,049
                                                        --------------------------
CASH AT END OF PERIOD                                    $ 2,937,984   $3,143,778
                                                        ==========================

</TABLE>





See  notes  to  consolidated  financial  statements.



                                       5

<PAGE>


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.  Basis  of  Presentation

The  accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
for  interim  financial information and the instructions to Form 10-QSB and Item
310(b)  of  Regulation  S-B.  Accordingly,  they  do  not  include  all  of  the
information and disclosures required by generally accepted accounting principles
for  annual financial statements.  In the opinion of management, all adjustments
considered necessary for a fair presentation have been included.  The results of
operations  for  an interim period are not necessarily indicative of results for
the  full  year.  For  further  information,  please  refer  to the consolidated
financial statements of American Wagering, Inc. (the "Company"), and the related
notes, included within the Company's Annual Report on Form 10-KSB for the fiscal
year  ended  January 31, 2003, previously filed with the Securities and Exchange
Commission  from  which  the consolidated balance sheet at January 31, 2003, was
derived.  All  significant  inter-company  accounts  and  transactions have been
eliminated  in  the  consolidation.

Certain  amounts  in the consolidated financial statements of prior periods have
been  reclassified  to  conform  to  the  current  period  presentation.

2.  Net  Income  per  Share

Basic  net  income  per share is computed by dividing net income by the weighted
average  number  of common shares outstanding during the year.  Diluted earnings
per share considers potentially dilutive securities (options) as outstanding and
net income is adjusted for preferred stock dividends.  For the operating periods
presented,  the  tables  below  reconcile net income and weighted average shares
outstanding  used to calculate basic income per share to those used to calculate
diluted  income  per  share:
<TABLE>
<CAPTION>


                                                Three months ended April 30,
                                                     2003         2002
                                                  ------------------------
     <S>                                          <C>          <C>
     Income from continuing operations            $  134,646   $  193,207
     Preferred stock dividends                       (35,011)     (36,248)
                                                  ------------------------
     Net income, as adjusted                      $   99,635   $  156,959
                                                  ========================

     Loss from discontinued operations            $       --   $  (86,274)
                                                  ========================

     Net income                                   $  134,646   $  106,933
     Preferred stock dividends                       (35,011)     (36,248)
                                                  ------------------------
     Net income, as adjusted                      $   99,635   $   70,685
                                                  ========================
     Basic weighted average shares outstanding     7,836,846    7,836,846
                                                  ========================
     Diluted weighted average shares outstanding   8,151,304    8,173,958
                                                  ========================
</TABLE>


                                       6

<PAGE>



3.  Business  Segments

The  Company  conducts  its  continuing  operations  with  customers through its
Wagering  and  Systems  segments.   The  Wagering  segment  operated 46 race and
sports  books  throughout  Nevada  as  of  April  30, 2003.  The Systems segment
designs,  markets,  installs and maintains sports and race book wagering systems
for  the  Nevada  sports  betting  industry.  The  Company's  Keno  segment  was
discontinued  during  fiscal  year  end  2002.  Mega$ports Australia, previously
included  in  the  Company's  Wagering  segment, was sold during fiscal year end
2002.

Amounts  presented  below for prior periods have been reclassified to conform to
the  current  period  presentation.
<TABLE>
<CAPTION>


                        Three months ended April 30,
Continuing Operations       2003        2002
-----------------------  ----------  ----------
<S>                      <C>         <C>
Operating income (loss)
  Wagering               $ 304,221   $ 337,817
  Systems                  236,986     196,490
  SG&A                    (413,709)   (350,651)
                         ----------  ----------
                         $ 127,498   $ 183,656
                         ==========  ==========
</TABLE>



4.  Litigation

The  ultimate  disposition  of  certain  issues  involved  in  the  Racusin  and
Imagineering  matters described in Part II, Item 1, cannot be determined at this
time.  In  accordance  with  Statement  of  Financial Accounting Standard No. 5,
"Accounting  for  Contingencies,"  the  Company  has  recorded  an allowance for
probable  losses equal to the lower end of the estimated probable loss range and
periodically  revises  these  estimates as known facts and circumstances change.

The  Racusin  and  Imagineering  lawsuits  could  result in losses sufficient to
threaten  the financial viability of the Company.  Unless the litigation matters
are  resolved satisfactorily, or the Company is able to finance them adequately,
management  believes  that  the Company may not be able to satisfy its operating
cash  requirements  for  at  least  the  next  twelve  months from existing cash
balances  and  anticipated  cash  flows.  For  these  reasons  our  independent
auditors,  Piercy,  Bowler  Taylor  and  Kern,  have  indicated in their report,
included  in  the 10-KSB for the fiscal year ended January 31, 2003, dated April
8,  2003,  that  they  have  substantial  doubt  as  to the Company's ability to
continue as a going concern.  Final judgments significantly in excess of amounts
accrued  could have a significant negative impact on the Company's existing cash
balances  and anticipated cash flows.  Final judgements in connection with these
matters could be determined within the next twelve months.  At the present time,
management  is  considering  the options available to the Company, including the
filing  of  Chapter  11  bankruptcy.

5.      Regulatory  Matters

The scope of the Company's licensed race and sports books operation in the State
of  Nevada  is  limited  by  regulation and statute (as well as certain federal,
county  and  local laws and ordinances).  The passage of legislation designed to
limit or prohibit race and/or sports wagering, at any level of government, would
likely  have  a  material adverse affect upon the Company's wagering operations.


                                       7

<PAGE>


All  jurisdictions  that have legalized gaming require various licenses, permits
and  approvals  for  manufacturers  and  distributors  of  gaming  devices  and
equipment.  In  general, such requirements involve restrictions similar to those
of  Nevada.



                                       8

<PAGE>



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

This  report  on  Form 10-QSB contains certain forward-looking statements within
the meaning of section 21(e) of the Securities Exchange Act of 1934, as amended,
and  other  applicable securities laws.  All statements other than statements of
historical  fact  are  "forward-looking  statements"  for  purposes  of  these
provisions,  including any projections of earnings, revenues, or other financial
items; any statements of the plans, strategies, and objectives of management for
future  operation; any statements concerning proposed new products, services, or
developments,  any  statements  regarding  future  economic  conditions  or
performance,  statements  of belief, and any statement of assumptions underlying
any  of  the foregoing.  Such forward-looking statements are subject to inherent
risks  and  uncertainties, and actual results could differ materially from those
anticipated  by  the  forward-looking  statements.

Liquidity  and  Capital  Resources

The  Company  has  negative  cash flow exposures due to the litigation judgments
against  the Company in two lawsuits referred herein as the Racusin case and the
Imagineering case. A more complete discussion of these cases can be found in the
"Legal  Proceedings"  section of this 10-QSB found under Part II, Item 1.  Final
judgment  in  the  Imagineering and Racusin cases, if significantly in excess of
the  minimum  amount  estimated  and  accrued, could have a significant negative
impact  on  the  Company's  cash  balances  and  cash  flows.

On  December  31,  2002,  the Company was notified that their bonds covering the
Gaming  Control  Board  Regulation  22.040  Reserve  Requirement  were cancelled
effective March 1, 2003, due to the rehabilitation (bankruptcy) of the insurance
company  providing  the  bonds.  The  Regulation  requires the Company have cash
reserves  to  cover  any  outstanding wagering liability such as unpaids, future
tickets  and telephone account deposits.  To meet the regulation requirements in
the  short term, the Company set aside $1,000,000 in a certificate of deposit on
February  25,  2003,  which  is  marked as restricted cash.  By the start of the
professional  football  season  (approximately  September 1, 2003) when wagering
liabilities  historically  increase,  the  Company  must  fund  an  additional
$1,000,000  to  $1,300,000  to  the  Regulation  22.040  Reserve  Requirement;
accordingly,  the  Company will require additional cash and/or new bonds.  There
is  no  assurance that the Company will be able to obtain new bonds in an amount
sufficient  to  cover  the  Regulation  22.040  Reserve  Requirement and/or have
sufficient cash reserves to apply towards the reserve requirement.  An inability
to  increase  the  reserve requirement as necessary could have an adverse impact
upon  the  Company  including,  but  not  limited  to,  requiring  a significant
reduction  in  the  number  of  locations operated by the Leroy's Horse & Sports
Place  subsidiary  and/or requiring a significant reduction in the handle (total
amount  wagered).

The  Racusin and Imagineering lawsuits (see "Legal Proceedings") could result in
losses  sufficient  to  threaten  the  financial  viability  of  the Company and
possible  negative  cash  flow  exposures.  Unless  the  litigation  matters are
resolved  satisfactorily,  or  the  Company  is able to finance them adequately,
management  believes  that  the Company may not be able to satisfy its operating
cash  requirements  for  at  least  the  next  twelve  months from existing cash
balances  and  anticipated  cash  flows.  For  these  reasons  our  independent
auditors,  Piercy,  Bowler Taylor and Kern, have indicated in their report dated
April  8,  2003,  included  in  the 10-KSB for the fiscal year ended January 31,
2003,  that  they have substantial doubt as to the Company's ability to continue
as  a  going  concern.  The  Company  plans  to accumulate cash


                                       9

<PAGE>


liquidity in the fiscal year ending January 31, 2004 to fund possible effects of
litigation,  seasonality  of  sports  betting,  timing  of system sales, and the
possible  effects  of  legislation  to  ban wagering on amateur athletic events.
Final  judgments  significantly  in  excess  of  amounts  accrued  could  have a
significant  negative  impact  on  the  Company's  existing  cash  balances  and
anticipated  cash flows. Final judgements in connection with these matters could
be  determined within the next twelve months. At the present time, management is
considering  the  options  available  to  the  Company,  including the filing of
Chapter  11  bankruptcy

RESULTS  OF  OPERATIONS  -  Three  months  ended  April  30,  2003  and  2002

Revenues

Revenues  for  the three months ended April 30, 2003, increased $327,378 (14.4%)
to  $2,601,945  from  the  three  months  ended April 30, 2002.  The increase in
revenues  is attributed to an increase in Wagering revenues of $57,434 resulting
primarily  from  the  addition of pari-mutuel race commission revenue during the
reported  period;  and a increase of $269,944 in Systems revenues resulting from
increased  equipment  sales  for  the  three  months  ended  April  30,  2003.

     Wagering  Operations
     --------------------
     Revenues from wagering increased $57,434 (14.4%) to $1,414,338 in the first
     three  months of 2003 as compared with the same three-month period in 2002.
     The  increase in revenue is primarily attributable to a $84,259 addition of
     pari-mutuel race commission revenue. The Company did not have a pari-mutuel
     race  location for the three months ended April 30, 2002. This increase was
     offset  by  a $26,825 (2.0%) decrease in wagering revenue due to a decrease
     in  the  net  win percentage. The net win percentage was 7.0% for the three
     months ended April 30, 2003, as compared to 7.1% for the three months ended
     April 30, 2002. Handle was $19,039,158 for the three months ended April 30,
     2003,  $180,961 less than the same three-month period ended April 30, 2002.
     The  Company  attributes  the  decrease  in handle to the 2002 professional
     football  championship  game  being  held  in  February  2002.  There is no
     assurance  that  our handle will not decrease in the future. Elimination of
     unprofitable locations, closure of host properties, changes in state and/or
     federal  regulations,  and  other  factors beyond our control may result in
     further  declines  in  handle.  An  increase  or  decrease in handle is not
     necessarily  indicative  of  an  increase  or  decrease  in  net  win.

     Systems  Operations
     -------------------
     Equipment  and  software  license sales increased by $313,625 (170.1%) from
     the same period in 2002 while the gross profit margin decreased to 60.7% in
     the  current  period compared to 70.0% in the prior period. The increase in
     sales  was  partially due to the introduction of a new touch-tone automated
     betting  system  product. Maintenance revenues increased 269,944 (22.7%) to
     $1,187,607  from  the  same  period  in  2002.  CBS equipment sales are low
     volume, high dollar sales based on the need of the market, which is limited
     based  on  the  number  of  casinos  that  operate  race  and sports books.
     Equipment sales are not recurring like the maintenance fees, as the impetus
     for  a  sale  is  outdated  or expired equipment at existing casinos or the
     opening  of  a  new  sports  book.

                                       10

<PAGE>

Operating  Costs  and  Expenses

Comparative  operating  costs  and expenses for the three months ended April 30,
2003,  increased $383,536 (18.3%) to $2,474,447 for the three months ended April
30,  2003,  as  compared to $2,090,911 for the same period in 2002.  This figure
includes a $282,195 increase in direct costs and expenses, a $12,612 increase in
research and development expenses and, a $56,212 increase in selling general and
administrative  costs and a $32,517 increase in depreciation and amortization as
discussed  below.

     Direct  Costs  and  Expenses
     ----------------------------
     The  increase  in the direct costs and expenses for the Wagering segment of
     $124,586  (13.2%)  is  primarily  due  to  a  $80,638  increase in employee
     expenses,  a  $35,923 increase in location rents, and an additional $34,945
     in  pari-mutuel  race  related  expenses for which there was no pari-mutuel
     race  location  in 2002. The increases were offset by a $19,523 decrease in
     tax  and  license  due  to  lower  revenues  and  a  $6,946  decrease  in
     communication expenses due to the Company's efforts to reduce expenditures.
     The  increase  in  the direct costs and expenses for the Systems segment of
     $157,609  (39.9%)  is primarily due to a $145,691 increase in cost of goods
     sold  resulting from the increase in equipment sales and a $11,918 increase
     in  costs  associated  with  the  maintenance  of  systems.

     Research  and  Development
     --------------------------
     For  the  three months ended April 30, 2003, research and development costs
     increased  $12,612  (5.8%)  to  $229,869 due primarily to an $11,818 (5.6%)
     increase  in  employee  related  expenses.

     Selling,  General  and  Administrative
     --------------------------------------
     For  the  three  months  ended  April  30,  2003,  selling,  general  and
     administrative  costs  increased $56,212 (30.0%) primarily due to a $63,448
     increase  in  employee  related expenses offset by the Company's efforts to
     reduce  expenditures.

     Depreciation  and  Amortization
     -------------------------------
     For  the  three  months ended April 30, 2003, depreciation and amortization
     increased  $32,517  (30.0%)  primarily due to $48,640 impairment loss taken
     for  assets  of Sports Systems, Inc. which the Company does not believe are
     recoverable. This increase is offset by a reduction of depreciation expense
     for  assets,  which  were  in  discontinued  operations.

Operating  Income

The operating income for the three months ended April 30, 2003, deceased $56,158
primarily  from  the increase in operating costs as discussed above for the same
three  months  ended  April  30,  2002.



Item  3.          Controls  and  Procedures

As  required  by  Rule 13a-15 under the Exchange Act, the Company carried out an
evaluation  of  the  effectiveness  of the design and operation of the Company's
disclosure  controls  and procedures within the 90 days prior to the filing date
of  this report.  This evaluation was carried out under the supervision and


                                       11

<PAGE>


with  the  participation  of  the  Company's management, including the Company's
Chief  Executive  Officer and Company's Chief Financial Officer. Based upon that
evaluation,  the  Company's  Chief Executive Officer and Chief Financial Officer
concluded  that  the Company's disclosure controls and procedures are effective.
There  have been no significant changes in the Company's internal controls or in
other  factors, which could significantly affect internal controls subsequent to
the  date  the  Company  carried  out  its  evaluation.

Disclosure  controls  and  procedures are controls and other procedures that are
designed  to ensure that information required to be disclosed in Company reports
filed or submitted under the Exchange Act is recorded, processed, summarized and
reported,  within  the  time  periods  specified  in the Securities and Exchange
Commission's  rules  and  forms.  Disclosure  controls  and  procedures include,
without  limitation, controls and procedures designed to ensure that information
required  to  be  disclosed  in  Company reports filed under the Exchange Act is
accumulated  and  communicated  to  management,  including  the  Company's Chief
Executive  Officer  and  Chief  Financial  Officer,  to  allow  timely decisions
regarding  required  disclosure.



                                       12

<PAGE>


                           PART II - OTHER INFORMATION
                           ---------------------------


Item  1.          Legal  Proceedings

Racusin

On  November  14,  2002,  the  U.S. District Court of Nevada issued a verdict in
favor of Michael Racusin ("Racusin") and against the Company.  The initial draft
of the judgment order received on November 20, 2002 from Racusin's legal counsel
was  in  the  amount of $3,791,216, which included $1,481,216 of interest (as of
November 20, 2002). The draft also allowed an offset of $756,340, as of November
20,  2002  (the amount previously paid by the Company to Racusin pursuant to the
original  trial  judgment  in  September  1997).

Upon  the  advice  of  legal  counsel, the Company contested the entire interest
portion  of  the  draft  judgment  ($1,481,216) due to the timely payment of the
original  trial judgment by the Company in September 1997 and in accordance with
Nevada  law.

On June 2, 2003, the Company was notified that the U.S. District Court of Nevada
ruled  in  favor  of  the Company on the contested interest issue.  Accordingly,
interest on the jury verdict accrues only from November 15, 2002, until the date
the  judgment  is  satisfied.  The  Company  had previously accrued $328,624 for
interest,  which  will  not be adjusted until such time as the court has entered
the  final  judgment  in  the  matter.

It is possible that this decision on the post-trial interest issue may result in
an  appeal  or  other  legal  actions by Racusin.  An appeal on the recent court
ruling,  additional  legal  actions,  etc.  could  extend  this  matter  for  an
additional  one  to  three  years.  In  addition,  management is considering the
options available to the Company in order to protect the Company's assets in the
event  of  execution on the final judgment, including the filing of a Chapter 11
bankruptcy.

The  Company  recorded  $1,643,625  against  additional  paid-in  capital in the
quarter  ended  October 31, 2002, which represents the jury verdict less amounts
previously paid by the Company. The Company has been in litigation with Racusin,
who  introduced  certain  underwriters  in  connection  with  the initial public
offering,  since  1995.  The  Company  disputed Racusin's claim for compensation
under  agreements  that  the  Company  believed  were  unenforceable.

Imagineering  Systems,  Inc.

On  October 21, 1998, Imagineering Systems, Inc. ("ISI") filed a civil complaint
against the Company claiming, among other things, breach of contract and implied
covenant  of  good  faith  and  fair  dealing.  On November 8, 1998, the Company
brought  an  action to recover on loans it made to ISI.  On October 2, 2000, the
Company's  "Notice  for  Summary Judgment" for the claim of relief for breach of
Promissory  Note  was  granted.  The Company was awarded $76,583, plus interest.
The  execution  of  the  judgment  was stayed until the outcome of the ISI civil
complaint  is  known.


                                       13

<PAGE>


On October 17, 2000, a trial by jury was held and, on October 30, 2000, the jury
rendered  a  verdict in favor of ISI in the amount of $397,500 plus interest for
breach  of  contract and $1,000,000 plus interest for breach of implied covenant
of  good  faith  and fair dealing.  The Company immediately brought a post-trial
motion  asking  the  court  to:  (1) disregard the jury verdict; (2) order a new
trial; or (3) reduce the amount of the judgment.  On February 1, 2001, the Court
filed  its decision which: (a) refused to set aside the jury's award of $397,500
on  the  breach  of  contract claim; and (b) granted a new trial on the issue of
damages  awarded  on the claim for breach of the covenant of good faith and fair
dealing  unless  ISI  agreed  to reduce the judgment for $1,000,000 to $500,000,
which  they  did.  As  a  result  of the Court's decision and ISI's actions, the
award  to  ISI  was  effectively  reduced  from  $1,397,500,  plus  interest, to
$897,500,  plus  interest.  Any  potential  damage award would not be covered by
insurance.

The  Company  has  appealed  the Court's decision based upon a number of factors
including,  but  not  limited  to:  (1)  the award for damages on both breach of
contract  and  implied  covenant  of  good faith and fair dealing is contrary to
Nevada contract law; (2) the award of damages for the breach of implied covenant
of good faith and fair dealing constitutes specific performance; and (3) ISI did
not  provide sufficient evidence at trial for the award of damages for breach of
contract.

This  matter  was heard by the Nevada Supreme Court on April 15, 2003; a written
opinion  is  expected  within  the  next  nine  (9)  months.  No  opinion can be
expressed as to the outcome of this matter.  The potential range of loss in this
matter  would be from $0 to $1,397,500, plus any statutory interest.  It is also
possible  that  the  appeal  may  result in a new trial on the issue of damages,
which  could extend the potential outcome of this matter for an additional three
to  five  years.  Based  upon the advice of counsel, the Company has accrued the
lower  end of the possible outcome of $213,000, plus interest, less $76,583 plus
interest  due  to  the  Company,  with  respect  to  this  litigation.

Willow  International  Ventures  Corporation

In 2001, the Company was sued for trademark infringement by Willow International
Ventures  Corporation ("Willow") regarding the name "Mega$ports".  On August 28,
2002,  Willow  and  the  Company settled.  In anticipation of the settlement, on
July  22,  2002,  the Company officially changed the name of Mega$ports, Inc. to
Contest  Sports  Systems,  Inc.  and, as a result of the settlement, the Company
wrote  off  the  Mega$ports  trademark  in the amount of $252,532 in the quarter
ended  July  31,  2002.

Jean  Development  Co.,  et.al.

The  Company is a defendant in a claim brought by Jean Development Company, Jean
Development  West  and Railroad Pass Investment Group alleging the nonpayment of
fees  associated  with  the  operation  of  the  keno game by AWI Keno, Inc. The
Company  is  currently  involved  in  discussions  and expects this matter to be
settled without material impact on the Company. In the event a settlement cannot
be  reached,  the  Company  believes  the  impact of the lawsuit will not have a
material  effect on our financial position, results of operations or cash flows.
AWI  Keno,  Inc.  was  subsequently  renamed  AWI  Manufacturing,  Inc.


                                       14

<PAGE>

Other

The  Company  is involved in certain other legal matters arising in the ordinary
course  of  business.  In  the  opinion  of  management,  based on the advice of
counsel, the outcome of the other actions will not have a material effect on the
financial  position,  results  of  operations  or  cash  flows  of  the Company.


Item  2.          Changes  in  Securities  and  Use  of  Proceeds
None


Item  3.          Defaults  Upon  Senior  Securities
None


Item  4.          Submission  of  Matters  to  a  Vote  of  Security  Holders
None


Item  5.          Other  Information
None


Item  6.          Exhibits  and  Reports  on  Form  8-K.
    a.)     Exhibits.

      Exhibit Number   Description
      ---------------  -----------
      99.1             Chief Executive Officer's and Chief Financial Officer's
                       Certification under Section 906 of the Sarbanes-Oxley
                       Act  of  2002

    b.)     Reports  on  Form  8-K

On  June  3, 2003, the Company filed a Form 8-K with respect to an Item 5 matter
(court ruling on interest issue in Racusin lawsuit) which is hereby incorporated
by  reference.



                                       15

<PAGE>

                                    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.

AMERICAN  WAGERING,  INC.

Dated  June  9,  2003



By:    /s/ Timothy  F.  Lockinger
       ________________________________________
       Timothy F. Lockinger
       Chief Financial Officer, Secretary and Treasurer
       (Principal  Accounting  Officer)







                                       16

<PAGE>







                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER

The  undersigned  chief  executive  officer,  individually,  certifies  that:

1.   I  have  reviewed this quarterly report on Form10-QSB of American Wagering,
     Inc.;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a)   designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b)   evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c)   presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b)   any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  facts  that  could  significantly  affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

     /s/ Victor Salerno
     ___________________________________
     Victor Salerno, Chief Executive Officer          Date:  June  9,  2003

<PAGE>

                    CERTIFICATION OF CHIEF FINANCIAL OFFICER

The  undersigned  chief  financial  officer,  individually,  certifies  that:

1.   I  have  reviewed this quarterly report on Form10-QSB of American Wagering,
     Inc.;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a)   designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b)   evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c)   presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b)   any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  facts  that  could  significantly  affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

          /s/ Timothy  F.  Lockinger
          _____________________________________
          Timothy F. Lockinger, Chief Financial Officer      Date: June 9, 2003