[As adopted in Release No. 34-32231, April 28, 1993, 58 F.R. 26509]

                     U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
       [X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

             For the quarterly period ended:           March 31, 1998
                                            ---------------------------------

       [  ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

             For the transition period from                   to
                    Commission file number                 0-21991

                        ADVANCED GAMING TECHNOLOGY, INC.
                     (Exact name of small business issuer as
                            specified in its charter)

            Wyoming                                              98-0152226
  (State or other jurisdiction                                 (IRS Employer
of incorporation or organization)                            Identification No.)

                        2482 - 650 West Georgia Street,
                                P.O. Box 11610,
                      Vancouver, British Columbia V6B 4N9
                    (Address of principal executive offices)

                                 (604) 689-8841
                            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  Exchange  Act during the past 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


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDING DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes   No


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<PAGE>



                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practical date: April 30, 1998 127,060,050

     Transitional Small Business Disclosure Format (check one).
Yes      ;  No   x


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

     The unaudited condensed  consolidated financial statements presented herein
have been prepared by the Company in accordance  with the  instructions  to Form
10-QSB and do not include all of the information and note  disclosures  required
by  generally  accepted  accounting  principles.  These  condensed  consolidated
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial statements and notes thereto included in the Company's Form 10-KSB for
the year ended December 31, 1997. The accompanying financial statements have not
been examined by independent  accountants in accordance with generally  accepted
auditing standards,  but in the opinion of management such financial  statements
include  all  adjustments  (consisting  only of  normal  recurring  adjustments)
necessary  to present  fairly the  Company's  financial  position and results of
operations.  The results of operations for the three months ended March 31, 1998
may not be  indicative  of the results  that may be expected for the year ending
December 31, 1998.
























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<PAGE>



                        Advanced Gaming Technology, Inc.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


                                                        March 31    December 31
                                                    ------------   ------------
                                                            1998           1997
                                                    ------------   ------------
ASSETS
Current Assets
  Cash and cash equivalents ......................  $     56,458   $     17,276
  Accounts receivable, net .......................       303,111        234,187
  Prepaid expenses ...............................        27,706         84,640
  Deferred charges ...............................        56,346        248,564
  Inventory ......................................       109,606        163,156
  Notes receivable ...............................         9,069          9,878
                                                    ------------   ------------
     Total current assets ........................       562,296        757,701
                                                    ------------   ------------

Property and Equipment ...........................     1,939,797      3,527,407
  Less: accumulated depreciation .................      (377,815)     1,407,590
                                                    ------------   ------------
                                                       1,561,982      2,119,817
                                                    ------------   ------------

Intangible and other assets ......................     4,919,960      4,982,272
                                                                   ------------
                                                    ------------   ------------
     Total assets ................................  $  7,044,238   $  7,859,790
                                                    ============   ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
  Accounts payable and accrued liabilities .......  $  3,387,705   $  4,310,325
  Notes payable ..................................       175,000        800,000
  Convertible notes ..............................     2,377,500      3,477,500
  Deferred revenue ...............................       390,000        390,000
  Current portion of long-term debt ..............       757,451      1,911,256
                                                    ------------   ------------
     Total current liabilities ...................     7,087,656     10,889,081

Long term obligations, net of current portion ....     3,150,620      1,724,302
                                                    ------------   ------------
     Total liabilities ...........................    10,238,276     12,613,383
                                                    ------------   ------------

Stockholders' Deficit
   Preferred Stock - 10% cumulative, $.10 par value;
    authorized 4,000,000 shares; issued - nil ....          --             --
  Common Stock - $.005 par value; authorized
   150,000,000 shares; issued and outstanding
   120,559,944 in 1998 and 98,439,431 in 1997 ....       602,800        492,197
  Additional paid-in capital .....................    29,246,552     27,703,310
  Accumulated deficit ............................   (33,043,390)   (32,949,100)
                                                    ------------   ------------
     Total stockholders' deficit .................    (3,194,038)    (4,753,593)
                                                    ------------   ------------
     Total Liabilities and Stockholders' Deficit .  $  7,044,238   $  7,859,790
                                                    ============   ============


The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

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<PAGE>



                        Advanced Gaming Technology, Inc.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)





                                                      For the Three Months
                                                        Ended March 31
                                               --------------------------------
                                                        1998               1997
                                               -------------       ------------

Revenues ................................      $     184,790       $    510,366
Cost of revenues ........................             92,280            106,734
                                               -------------       ------------
Gross margin ............................             92,510            403,632
                                               -------------       ------------

Expenses
 Research and development ...............            202,361            214,241
 General and administrative .............            857,757            624,800
                                               -------------       ------------
                                                   1,060,118            839,041
                                               -------------       ------------

Loss from operations ....................            967,608            435,409

Other income (expense), net .............            873,318           (298,301)
                                               -------------       ------------

Net Loss ................................      $     (94,290)      $   (733,710)
                                               =============       ============

Net loss per common share ...............      $        --         $      (0.02)
                                               =============       ============

Weighted average common shares outstanding       109,468,320         45,245,508















The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

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<PAGE>



                        Advanced Gaming Technology, Inc.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                         For the Three Months
                                                            Ended March 31
                                                      -------------------------
                                                             1998          1997
                                                      -----------   -----------
Cash Flows From Operating Activities:
Net Loss ...........................................  $   (94,290)  $  (733,710)
Adjustments to Reconcile Net Loss to Net Cash
 Provided by (Used in) Operating Activities:
     Depreciation and amortization .................      316,434       191,515
     Deferred revenues .............................         --        (310,000)
     Issuance of common stock for expenses .........       93,500       366,808
     Change in operating assets and liabilities:
       Accounts receivable .........................      (68,924)      (85,787)
       Prepaid expenses ............................       56,934      (734,008)
       Deferred charges ............................      192,218          --
       Inventory ...................................       53,550       (26,316)
       Notes receivable ............................          809       (69,790)
       Accounts payable and accrued liabilities ....     (922,620)     (847,014)
                                                      -----------   -----------
Net cash used in operating activities ..............     (372,389)   (2,248,302)
                                                      -----------   -----------

Cash Flows From Investing Activities:
Intangible assets ..................................         --          (2,002)
Purchase of property and equipment .................         --         (17,597)
Disposal of property and equipment .................      298,144         --
Security deposits ..................................       (2,181)         --
Deferred development costs .........................        7,750        (1,476)
                                                      -----------   -----------
Net cash provided by (used in) investing activities.      303,713       (21,075)
                                                      -----------   -----------

Cash Flows From Financing Activities:
Proceeds from issuance of common stock .............    1,560,345       674,308
Proceeds from debt and notes .......................         --       2,702,590
Repayment of debt and notes ........................     (625,000)     (665,368)
Payment of convertible notes .......................   (1,250,000)         --
Proceeds from convertible notes ....................      150,000          --
Principal payments on long-term debt ...............      (33,599)         --
Proceeds from long-term debt .......................      306,112          --
Bank loan ..........................................         --        (354,100)
                                                      -----------   -----------
Net cash provided by financing activities ..........      107,858     2,357,430
                                                      -----------   -----------
Net increase in cash and cash equivalents ..........       39,182        88,053
Cash and cash equivalents at beginning of period ...       17,276        76,615
                                                      -----------   -----------
Cash and cash equivalents at end of period .........  $    56,458   $   164,668
                                                      ===========   ===========




The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

                                        5

<PAGE>



                        Advanced Gaming Technology, Inc.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                         For the Three Months
                                                            Ended March 31,
                                                       -----------------------
                                                          1998          1997
                                                       ----------    ----------

Supplemental Disclosure of Cash Flow Information:

  Cash paid during the period for interest ........    $  122,377    $  125,670

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

  Conversion of notes to common stock .............    $1,577,124    $1,645,903
  Issuance of common stock for debt reduction .....    $  310,696    $     --


































The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

                                        6

<PAGE>



                        Advanced Gaming Technology, Inc.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                   (Unaudited)


1.   Interim Reporting

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles and
with Form  10-QSB  requirements.  Accordingly,  they do not  include  all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial statements. In the opinion of management, all adjustments
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three month period endeing March 31, 1998,  are not  necessarily
indicative  of the results that may be expected for the year ended  December 31,
1998. For further  information,  refer to the financial statements and footnotes
thereto  included  in the  Company's  annual  report on Form 10-KSB for the year
ended December 31, 1997.


Item 2.  Management's Discussion and Analysis or Plan of Operation.

General  - This  discussion  should  be read in  conjunction  with  Management's
Discussion and Analysis of Financial  Condition and Results of Operations in the
Company's annual report on Form 10-KSB for the year ended December 31, 1997.

The  Company's  shares of capital stock are  registered  under Section 12 of the
Securities  Exchange Act of 1934. The Company became a reporting issuer in March
1997. This quarterly  report on Form 10-QSB and the information  incorporated by
reference  herein  contain  forward  looking  statements  within the  meaning of
Section 27A of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities Exchange Act of 1934, as amended.  Such statements  include,  but are
nor  limited to,  projected  sales,  gross  margin and net income  figures,  the
availability  of  capital  resources,   plans  concerning  products  and  market
acceptance.

Forward-looking  statements are inherently  subject to risks and  uncertainties,
many of which cannot be predicted  with  accuracy and some of which may not even
be anticipated. Future events and actual results, financial and otherwise, could
differ materially from those set forth in or contemplated by the forward-looking
statements  herein  and any  forward-looking  statements  should  be  considered
accordingly.

The highlight of the first  quarter of 1998 was the  continued  execution of the
restructuring  plan  announced by the Company in December 1997. The key elements
achieved to date are as follows:

     o    Completion of the following agreements with a major competitor - Bingo
          Technologies Corporation ("BTC"):

          a)  Financing,  Royalty,  and  Licensing  Agreement,  granting BTC the
          exclusive  right to market,  manufacture  and distribute the Company's
          MAXPLUS and TurboMAX  products for a five year term in the U.S. market
          only. The benefits to Advanced Gaming include:


                                        7

<PAGE>



               o    A one  time  license  fee  of  $1,500,000,  which  has  been
                    recognized  in the  Statement  of  Operations  for the three
                    months ended March 31, 1998;

               o    A 15% royalty on gross  revenues  generated  by BTC,  with a
                    minimum in each year of $350,000;

               o    A  substantial  overhead  reduction  (approximately  40%) by
                    assignment  of the  Denver  distribution  facility,  and the
                    Cleveland marketing office to BTC.

          b)   Purchase   Agreement,   recognizing  the  assignment  of  certain
               customer accounts leasing the MAXPLUS and TurboMAX  products,  as
               well as related equipment and inventory. The proceeds credited to
               the Company were approximately $375,000.

     o    Appointment of a new Chairman,  and Chief Executive Officer, and Board
          of Directors Mr. Tom Nieman was appointed  Chairman,  Chief  Executive
          Officer, and will act as President.  As well as Mr. Nieman, Mr. Robert
          Hunziker, and Mr. Neil Jenkins were appointed Directors. Subsequent to
          the end of the quarter,  Mr.  Jenkins  resigned  from the Board due to
          personal  reasons  and  because  of  other  business  interests  which
          constrain his available  time. The Company  expects to appoint a third
          board  member  as a part of its  current  negotiations  with a private
          investment banking organization.

During the second  quarter the Company  expects to complete the  restructure  by
relocating it's executive and administrative office to Las Vegas, Nevada, and to
further  reduce  operating  expenses.  The  company  will  focus  on  generating
revenues. In order of priority these revenue sources are as follows:

     o    MAXLITE  hand-held  units in the United  States by way of licensing or
          distribution  agreements.  In March  1998,  the Company  completed  an
          exclusive  distribution  agreement  with K & B Sales  for the state of
          Texas, which is a dominant market for bingo in the U.S.;

     o    Continued  development of Parti MAX, a  bi-directional  hand-held unit
          designed for the United Kingdom market;

     o    Continued   development  of  Sonic  Bingo,  a  fast  paced  multi-site
          progressive  bingo game,  with it's joint venture  partner SEGA Gaming
          Technology, Inc.;

     o    Marketing and licensing of the Max Bingo Systems in the newly emerging
          Canadian market.

Results of Operations -

1998 Compared to 1997

The loss for the three months  ended March 31, 1998 of $94,290 is  substantially
lower than that for the same period in 1997,  and is the lowest  quarterly  loss
since  1994.  This  is due to the one  time  license  fee  received  from  Bingo
Technologies Corporation ("BTC") of $1,500,000 for the exclusive right to market
the MAXPLUS and TurboMAX products in the United States for a five year period.

This  agreement was effective  February 9, 1998 and accounts for the lower lease
revenues;  even after  removing  income from joint  venture  projects in 1997 of
$310,000.  However,  royalties  of  15%  will  accrue  to  the  Company  on  all
installations  by BTC of MAXPLUS and  TurboMAX,  with a minimum of $350,000  per
year.


                                        8

<PAGE>



Although  general and  administrative  expenses  increased  over March 31, 1997,
these  expenses were  significantly  lower than those for the second,  third and
fourth  quarters  of 1997  ($1.7m,  $1.4m,  and $1.9m,  respectively).  The full
effects of the Company's  restructuring  will not be recognized until the second
and third quarters of this year.

Financing  costs  and  interest  are  substantially  higher  than in 1997 due to
increased deferred finance  amortization  related to convertible notes ($192,000
vs.  $53,000).  These  deferred  charges  will be fully  amortized in the second
quarter.

The Company also  recorded a writedown on the sale of equipment  pursuant to the
agreement with Bingo Technologies Corporation of approximately $174,000.

Inflation and Regulation -

     The  Company's  operations  have not  been,  and in the  near  term are not
expected to be, materially affected by inflation or changing prices. This is due
in part to the highly capital  intensive  nature of the majority of the business
of the Company,  thereby reducing the chances of competition providing for sales
price  reductions  while  inflation  in the costs  are more  likely to be passed
through to the customer.

     The Company's operations are subject to state and local gaming laws as well
as various  federal laws and  regulations  governing  business  activities  with
Native  American  Tribes.  The State and local laws in the United  States  which
govern the lease and use of gaming products are widely disparate and continually
changing   due  to   legislative   and   administrative   actions  and  judicial
interpretations. If any changes occur in gaming laws through statutory enactment
or  amendment,  judicial  decision  or  administrative  action  restricting  the
manufacture,  distribution or use of some or all of the Company's products,  the
Company's  present  and  proposed  business  could be  adversely  affected.  The
operation  of gaming on Native  American  reservations  is subject to the Indian
Gaming Regulatory Act ("IGR").  Under IGR certain types of gaming activities are
classified  as Class I, Class II or Class III. The  Company's  business  will be
impacted based upon how its products are  ultimately  classified.  However,  the
Company does not believe that any recently enacted or presently pending proposed
legislation will have a material adverse effect on its results of operations.

Liquidity And Capital Resources -

     The Company  has  minimal  revenues,  which are not  sufficient  to support
operating expenses.  With both the reduction of operating expenses and the focus
on  generating  additional  revenues,  the Company  expects a positive cash flow
during the fourth  quarter of 1998.  Until then the  Company  requires  external
funding by way of debt and/or equity  issuances.  This is essential both for the
survival of the Company, and to allow the timely execution of its business plan.

     Currently the Company is negotiating  with several  parties in this regard,
but no formal  commitments  exist. There can be no assurance that such financing
will be available at all, or at terms acceptable to the Company.

     During the first quarter of 1998 the Company reduced it's total liabilities
by $2.4m.  This was done by the  utilization of funds  received  pursuant to the
Financing, Royalty, and Licensing Agreement with Bingo Technologies Corporation,
and through conversion of certain debt to equity.


                                        9

<PAGE>





                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

     None.

Item 2.  Changes in Securities

     None.

Item 3.  Defaults Upon Senior Securities

     None.

Item 4.  Submission of Matters to a Vote of Security Holders.

     None.

Item 5.  Other Information

     Effective  May 7, 1998,  Mr. Neil  Jenkins  resigned  from the Board due to
personal  reasons and because of other business  interests  which  constrain his
available time. The Company expects to appoint a third board member as a part of
its current negotiations with a private investment banking organization.

Item 6.  Exhibits and Reports on Form 8-K

     Sales of unregistered securities during the past three months were reported
on Form 8-K filings on January  14, 1998 and March 3, 1998 and are  incorporated
by reference.


















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<PAGE>


                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                        ADVANCED GAMING TECHNOLOGY, INC.
                                  (Registrant)





DATE:     May 20, 1998                    By:   /s/ Thomas S. Nieman
      -----------------------                  -----------------------------
                                                Thomas S. Nieman
                                                President, Chief Operating
                                                Officer and Chairman

DATE:     May 20, 1998                    By:   /s/ Donald Robert MacKay
      -----------------------                  ------------------------------
                                                Donald Robert MacKay
                                                Principal Financial and
                                                Accounting Officer






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