UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 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 JUNE 30, 1998.

_______   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    0-22290
                                 ------------------

                              CENTURY CASINOS, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

             DELAWARE                                   84-1271317
        --------------------                       ---------------------
      (State of incorporation)                     (IRS Employer ID No.)


             200-220 E. Bennett Ave., Cripple Creek, Colorado 80813
             ------------------------------------------------------
                    (Address of principal executive offices)

                                 (719) 689-9100
                                 --------------
                                 (Phone Number)

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 _____

          Number of shares of common stock, $.01 par value, outstanding
                              as of July 31, 1998:

                                   15,316,385

                                     - 1 -

<PAGE>


                              CENTURY CASINOS, INC.
                                   FORM 10-QSB
                                      INDEX

                                                                     Page Number
                                                                     -----------
PART I      FINANCIAL INFORMATION

Item 1.     Financial Statements (unaudited)

            Consolidated Balance Sheet as of  June 30, 1998               3

            Consolidated Statements of Operations for the Three           4
            Months Ended June 30, 1998 and 1997

            Consolidated Statements of Operations for the Six             5
            Months Ended June 30, 1998 and 1997

            Consolidated Condensed Statements of Cash Flows for           6
            the Six Months Ended June 30, 1998 and 1997

            Notes to Consolidated Financial Statements                    7

Item 2.     Management's Discussion and Analysis                         11

PART II     OTHER INFORMATION                                            15

            SIGNATURES                                                   16

                                     - 2 -


<PAGE>


CENTURY CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (Unaudited)


                                                                   June 30, 1998
ASSETS                                                             -------------

Current Assets:
   Cash and cash equivalents                                       $  2,713,648
   Short-term investments                                               503,895
   Prepaid expenses and other                                           653,424
                                                                   -------------
Total current assets                                                  3,870,967

Property and Equipment, net                                          18,493,487

Goodwill, net                                                        11,927,882

Other Assets                                                          1,247,613
                                                                   -------------
Total                                                              $ 35,539,949
                                                                   =============

LIABILITIES AND SHAREHOLDERS'  EQUITY

Current Liabilities:
     Current portion of long-term debt                             $    904,571
     Accounts payable and accrued expenses                            2,138,751
                                                                   -------------
Total current liabilities                                             3,043,322

Long-Term Debt, less current portion                                 13,289,896

Shareholders' Equity:
    Preferred stock;  $.01 par value;
      20,000,000 shares  authorized;  no shares
      issued or outstanding
    Common stock; $.01 par value; 50,000,000
      shares authorized; 15,861,885 shares
      issued; 15,316,385 shares outstanding                             158,619
    Additional paid-in capital                                       23,302,873
    Other comprehensive income - foreign
      currency translation                                              (38,665)
    Accumulated deficit                                              (3,605,354)
                                                                   -------------
                                                                     19,817,473
Treasury stock - 545,500 shares, at cost                               (610,742)
                                                                   -------------
Total shareholders' equity                                           19,206,731
                                                                   -------------
Total                                                              $ 35,539,949
                                                                   =============

    See notes to consolidated financial statements.

                                     - 3 -

<PAGE>


CENTURY CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                            For the Three Months Ended June 30,
                                                            -----------------------------------
                                                                  1998                 1997
                                                            -----------------------------------
Operating Revenue:
<S>                                                          <C>                <C>          
Casino                                                       $   4,774,000      $   4,919,156
Food and beverage                                                  220,483            234,474
Hotel                                                               12,808             11,263
Other                                                               18,747             57,372
                                                             -------------      -------------
                                                                 5,026,038          5,222,265
Less promotional allowances                                       (174,862)          (196,870)
                                                             -------------      -------------
           Net operating revenue                                 4,851,176          5,025,395
                                                             -------------      -------------
Operating Costs and Expenses:
Casino                                                           1,858,926          2,752,340
Food and beverage                                                   81,151            109,152
Hotel                                                                6,585              3,512
General and administrative                                       1,336,405          1,284,358
Depreciation and amortization                                      750,906            722,638
                                                             -------------      -------------
       Total operating costs and expenses                        4,033,973          4,872,000
                                                             -------------      -------------

Income from Operations                                             817,203            153,395
Other expense, net                                                (232,116)          (342,019)
                                                             -------------      -------------
Income (Loss) before Income Taxes and Extraordinary Item           585,087           (188,624)
Provision for income taxes                                         304,000             20,000
                                                             -------------      -------------
Income (Loss) before Extraordinary Item                            281,087           (208,624)
Extraordinary item - debt prepayment premium, net of
income tax benefit of $40,000                                                        (171,860)
                                                             -------------      -------------
Net Income (Loss)                                            $     281,087      $    (380,484)
                                                             =============      =============

Earnings (Loss) Per Share, Basic and Diluted:

Before extraordinary item                                    $        0.02      $       (0.01)
Extraordinary item                                                                      (0.01)
                                                             -------------      -------------
Net earnings (loss)                                          $        0.02      $       (0.02)
                                                             =============      =============

Comprehensive Income (Loss):
Net income (loss), as reported above                         $     281,087      $    (380,484)
Foreign currency translation adjustments                             2,179             (3,709)
                                                             -------------      -------------
Comprehensive income (loss)                                  $     283,266      $    (384,193)
                                                             =============      =============
</TABLE>

   See notes to consolidated financial statements.

                                     - 4 -

<PAGE>


CENTURY CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                             For the Six Months Ended June 30,
                                                            -----------------------------------
                                                                  1998                 1997
                                                            -----------------------------------
Operating Revenue:
<S>                                                          <C>                <C>          
   Casino                                                    $   9,053,897      $   9,277,773
   Food and beverage                                               396,961            443,744
   Hotel                                                            24,685             21,371
   Other                                                            44,177            109,385
                                                             -------------      -------------
                                                                 9,519,720          9,852,273
Less promotional allowances                                       (323,461)          (373,694)
                                                             -------------      -------------
           Net operating revenue                                 9,196,259          9,478,579
                                                             -------------      -------------
Operating Costs and Expenses:
   Casino                                                        3,587,299          5,287,547
   Food and beverage                                               154,534            200,771
   Hotel                                                            14,013              6,735
   General and administrative                                    2,672,129          2,594,479
   Depreciation and amortization                                 1,517,245          1,408,139
                                                             -------------      -------------

       Total operating costs and expenses                        7,945,220          9,497,671
                                                             -------------      -------------

Income (Loss) from Operations                                    1,251,039            (19,092)
   Other expense, net                                             (139,628)          (515,493)
                                                             -------------      -------------
Income (Loss) before Income Taxes and Extraordinary Item         1,111,411           (534,585)
   Income tax benefit                                             (293,000)          (102,000)
                                                             -------------      -------------
Income (Loss) before Extraordinary Item                          1,404,411           (432,585)
   Extraordinary item - debt prepayment premium, net of
      income tax benefit of $40,000                                                  (171,860)
                                                             -------------      -------------
Net Income (Loss)                                            $   1,404,411      $    (604,445)
                                                             =============      =============
Earnings (Loss) Per Share, Basic and Diluted:

   Before extraordinary item                                 $        0.09      $       (0.03)
   Extraordinary item                                                                   (0.01)
                                                             -------------      -------------
   Net earnings (loss)                                       $        0.09      $       (0.04)
                                                             =============      =============
Comprehensive Income (Loss):
   Net income (loss), as reported above                      $   1,404,411      $    (604,445)
   Foreign currency translation adjustments                        (10,888)            (8,530)
                                                             -------------      -------------
   Comprehensive income (loss)                               $   1,393,523      $    (612,975)
                                                             =============      =============
</TABLE>


   See notes to consolidated financial statements.

                                     - 5 -

<PAGE>


CENTURY CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                             For the Six Months Ended June 30,
                                                            -----------------------------------
                                                                  1998                 1997
                                                            -----------------------------------

<S>                                                          <C>                <C>          
Cash provided by operations                                  $   2,003,573      $   1,144,767
                                                             -------------      -------------
Cash used in investing activities                               (5,375,250)        (3,563,756)
                                                             -------------      -------------
Cash used in financing activities                                1,857,347             22,536
                                                             -------------      -------------
Decrease in cash and cash equivalents                           (1,514,330)        (2,396,453)

Cash and cash equivalents at beginning of period                 4,227,978          4,556,540
                                                             -------------      -------------

Cash and cash equivalents at end of period                   $   2,713,648      $   2,160,087
                                                             =============      =============
</TABLE>


   Supplemental Disclosure of Noncash Investing and Financing Activities:

   In  the six months ended June 30, 1997, the Company acquired gaming equipment
       in the amount of $62,512 subject to long-term vendor financing.

   Supplemental Disclosure of Cash Flow Information:

   Interest  paid by the Company was  $474,411  and  $317,007 for the six months
     ended June 30, 1998 and 1997.
   Income taxes paid by the Company were $324,489 and $14,080 for the six months
     ended June 30, 1998 and 1997.


   See notes to consolidated financial statements.


                                     - 6 -

<PAGE>


CENTURY CASINOS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------


1.   DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

     Century Casinos,  Inc. and  subsidiaries  (the "Company") own and operate a
     limited-stakes gaming casino in Cripple Creek, Colorado, and are pursuing a
     number of additional gaming opportunities internationally and in the United
     States.  Prior to July 1, 1996, the Company's  operations in Cripple Creek,
     Colorado,  consisted  of  Legends  Casino  ("Legends"),  which the  Company
     acquired  on March 31,  1994,  through a merger with  Alpine  Gaming,  Inc.
     ("Alpine").  On July 1, 1996,  the Company  acquired the net assets of Gold
     Creek  Associates,  L.P.  ("Gold  Creek"),  the owner of Womack's  Saloon &
     Gaming  Parlor  ("Womacks"),  which is  immediately  adjacent  to  Legends.
     Following the Company's  acquisition of Womacks,  interior renovations were
     undertaken on both  properties to facilitate the operation and marketing of
     the  combined  properties  as one  casino  under  the name  Womacks/Legends
     Casino.

     The accompanying  consolidated  financial statements and related notes have
     been prepared in accordance with generally accepted  accounting  principles
     for interim  financial  reporting and the  instructions  to Form 10-QSB and
     Item  310(b)  of  Regulation  S-B.  Accordingly,  certain  information  and
     footnote  disclosures normally included in financial statements prepared in
     accordance  with  generally  accepted   accounting   principles  have  been
     condensed  or  omitted.  In the  opinion  of  management,  all  adjustments
     (consisting of only normal  recurring  accruals)  considered  necessary for
     fair  presentation  of financial  position,  results of operations and cash
     flows have been included. These consolidated financial statements should be
     read in  conjunction  with  the  financial  statements  and  notes  thereto
     included in the  Company's  Annual Report on Form 10-KSB for the Year Ended
     December 31, 1997.


2.   COMPREHENSIVE INCOME

     Effective  January 1, 1998,  the Company  adopted  Statement  of  Financial
     Accounting  Standards  No. 130,  "Reporting  Comprehensive  Income,"  which
     establishes standards for reporting and display of comprehensive income and
     its  components.  It requires  that all changes in equity  during a period,
     except those  resulting  from  investment  by owners and  distributions  to
     owners,  be  reported  as a  component  of  comprehensive  income  and that
     comprehensive  income be displayed in a financial  statement  with the same
     prominence  as other  financial  statements  that  constitute a full set of
     financial statements.


                                     - 7 -

<PAGE>


3.   INCOME TAXES

     The income tax  provision for the  three-month  periods ended June 30, 1998
     and 1997, were based on estimated  full-year income for financial reporting
     purposes  adjusted for  permanent  differences,  which  comprise  primarily
     nondeductible  goodwill amortization  resulting from the Alpine acquisition
     and utilization of available net operating loss carryforwards ("NOLs"). The
     income tax  benefit of  $293,000  for the six months  ended June 30,  1998,
     consists  of (a) a  nonrecurring  benefit of  $815,000  resulting  from the
     reversal  of  the  valuation  allowance  previously  provided  against  the
     Company's net deferred tax assets;  and (b) a provision of $522,000,  based
     upon estimated  full-year income for financial  reporting purposes adjusted
     for nondeductible goodwill amortization,  and utilization of available NOLs
     and alternative minimum tax credit carryforwards. The income tax benefit of
     $102,000  (exclusive of a $40,000 benefit  associated with an extraordinary
     charge) for the six months  ended June 30, 1997,  was based upon  estimated
     full-year   income  for   financial   reporting   purposes   adjusted   for
     nondeductible goodwill amortization and utilization of available NOLs.


4.   EARNINGS (LOSS) PER SHARE

     Basic and diluted earnings (loss) per share for the three months ended June
     30, 1998 and 1997 were computed as follows:


<TABLE>
<CAPTION>
                                                            For the Three Months Ended June 30,
                                                            -----------------------------------
                                                                  1998                 1997
                                                            -----------------------------------

Basic Earnings (Loss) Per Share:
<S>                                                          <C>                <C>           
Net income (loss)                                            $     281,087      $    (380,484)
                                                             =============      =============
Weighted average common shares                                  15,343,583         15,861,885
                                                             =============      =============
Basic earnings (loss) per share                              $        0.02      $       (0.02)
                                                             =============      =============
Diluted Earnings (Loss) Per Share
Net income (loss), as reported                               $     281,087      $    (380,484)
Interest expense, net of income taxes,
  on convertible debenture                                           8,412
                                                             -------------      -------------
Net income (loss) available to common shareholders           $     289,499      $    (380,484)
                                                             =============      =============
Weighted average common shares                                  15,343,583         15,861,885
Effect of dilutive securities:

Convertible debenture                                              271,739

Stock options and warrants                                          80,583
                                                             -------------      -------------
Dilutive potential common shares                                15,695,905         15,861,885
                                                             =============      =============
Diluted earnings (loss) per share                            $        0.02      $       (0.02)
                                                             =============      =============
Excluded from computation of diluted earnings
   (loss) per share due to antidilutive effect:
      Options and warrants to purchase common shares             5,607,281          5,985,009
      Weighted average exercise price                        $        2.03      $        2.01
</TABLE>


                                     - 8 -

<PAGE>


         Basic and diluted  earnings  (loss) per share for the six months  ended
         June 30, 1998 and 1997 were computed as follows:


<TABLE>
<CAPTION>
                                                             For the Six Months Ended June 30,
                                                            -----------------------------------
                                                                  1998                 1997
                                                            -----------------------------------
Basic Earnings (Loss) Per Share:
<S>                                                          <C>                <C>           
   Net income (loss)                                         $   1,404,411      $    (604,445)
                                                             =============      =============
   Weighted average common shares                               15,566,798         15,861,885
                                                             =============      =============
   Basic earnings (loss) per share                           $        0.09      $       (0.04)
                                                             =============      =============
Diluted Earnings (Loss) Per Share
   Net income (loss), as reported                            $   1,404,411      $    (604,445)
      Interest expense, net of income taxes,
        on convertible debenture                                    16,824
                                                             -------------      -------------
   Net income (loss) available to common shareholders        $   1,421,235      $    (604,445)
                                                             =============      =============
   Weighted average common shares                               15,566,798         15,861,885
      Effect of dilutive securities:
         Convertible debenture                                     271,739
         Stock options and warrants                                 75,526
                                                             -------------      -------------
   Dilutive potential common shares                             15,914,063         15,861,885
                                                             =============      =============
   Diluted earnings (loss) per share                         $        0.09      $        (0.04)
                                                             =============      =============


   Excluded from computation of diluted earnings
      (loss) per share due to antidilutive effect:
         Options and warrants to purchase common shares          5,607,281          5,985,009
         Weighted average exercise price                     $        2.03      $        2.01
</TABLE>


Contingent  shares have been excluded from the  computation of diluted  earnings
per share for the three  months and six months  ended  June 30,  1997,  as their
effects would be antidilutive.

                                     - 9 -

<PAGE>


5.   CRIPPLE CREEK PROPERTY ACQUISITION

     On June 3, 1998, the Company acquired 22,000 square feet of land, zoned for
     gaming, adjacent to Womacks/Legends Casino. A partially-completed  building
     structure that occupied a portion of the land was  subsequently  razed, and
     the entire  property has been improved to provide the first paved  customer
     parking  spaces in the Cripple  Creek  market.  The purchase  price of $3.6
     million was financed  through the  Company's $15 million  revolving  credit
     facility with Wells Fargo Bank.

6.   SHARE REPURCHASES

     In February 1998 the Company's Board of Directors  approved a discretionary
     program to repurchase up to $1 million of the Company's  outstanding common
     stock.  The Board  believes that the Company's  stock is undervalued in the
     trading  market in relation to both its present  operations  and its future
     prospects.  Through  June 30,  1998,  the Company had  repurchased  545,500
     shares at an average cost per share of $1.12.

7.   AGREEMENT WITH FORMER PRINCIPALS OF GOLD CREEK

     In connection  with the  acquisition  of Womacks from Gold Creek on July 1,
     1996,  the purchase  agreement  provided that on July 1, 1998,  the Company
     would issue  1,060,000  shares of its common stock,  valued for  accounting
     purposes at $1.8 million at July 1, 1996, to two  principals of Gold Creek.
     The  number  of  shares  to be issued  was  subject  to upward  adjustment,
     determined  by a  formula,  to the  extent  that the  trading  price of the
     Company's stock was less than $1.58 at the time of issuance, and subject to
     downward adjustment to the extent that the trading price exceeded $4.00.

     During the second quarter of 1998, the Company  reached  agreement with the
     two principals to pay them a total of $1,629,000,  through a combination of
     cash and unsecured notes, in lieu of issuing common stock. Cash payments of
     $534,000 were made in the second  quarter,  with the  remaining  $1,095,000
     evidenced by three-year,  unsecured  promissory  notes bearing  interest at
     8.75%.  The aggregate amount of cash and promissory notes was recorded as a
     charge to additional paid-in capital.

8.   SETTLEMENT OF NOTE RECEIVABLE

     In March  1998 the  Company  negotiated  an  early  settlement  of its note
     receivable from SSK Game  Enterprises,  Inc.  ("SSK"),  with respect to the
     Company's  casino  management  agreement  with the  Soboba  Band of Mission
     Indians in California,  which  agreement was terminated in August 1995. The
     Company received cash payments,  included in "other income,  net," totaling
     $550,000 in the first quarter of 1998. Aggregate payments received pursuant
     to the note from August 1995 through date of settlement were $2,475,000, of
     which $1,843,000 was applied to recovery of capitalized  costs and $632,000
     was  recognized in income.  No further  payments will be received under the
     note.

9.   IMPAIRMENT OF EQUITY INVESTMENT

     On April 21, 1998,  the Gauteng  Gambling and Betting  Board  announced the
     award of the  remaining  two licenses  for the  province of Gauteng,  South
     Africa. Silverstar Development Ltd. ("Silverstar"),  a consortium which was
     one of the license  applicants and in which the Company  participates,  was
     not awarded a license.  Effective  March 31, 1998, the Company  recorded an
     impairment  allowance against its entire equity investment in Silverstar in
     the amount of $196,022.

                                     - 10 -

<PAGE>


Item 2.


MANAGEMENT'S DISCUSSION AND ANALYSIS


Forward-Looking Statements, Business Environment and Risk Factors

Information  contained in the following  discussion of results of operations and
financial  condition of the Company contains  forward-looking  statements within
the meaning of the Private  Securities  Litigation Reform Act of 1995, which can
be identified by the use of words such as "may," "will," "expect," "anticipate,"
"estimate," or "continue," or variations thereon or comparable  terminology.  In
addition,  all statements other than statements of historical facts that address
activities,  events  or  developments  that the  Company  expects,  believes  or
anticipates,  will or may occur in the  future,  and  other  such  matters,  are
forward-looking statements.

The  following  discussion  should  be read in  conjunction  with the  Company's
consolidated  financial  statements and related notes included elsewhere herein.
The Company's  future  operating  results may be affected by various  trends and
factors  which are beyond the  Company's  control.  These  include,  among other
factors,  the  competitive  environment  in  which  the  Company  operates,  the
Company's  present  dependence  upon the Cripple Creek,  Colorado gaming market,
changes in the rates of gaming-specific  taxes, shifting public attitudes toward
the socioeconomic  costs and benefits of gaming,  actions of regulatory  bodies,
dependence  upon key personnel,  the  speculative  nature of gaming projects the
Company  may  pursue,  risks  associated  with  expansion,  and other  uncertain
business conditions that may affect the Company's business.

The Company  cautions  the reader that a number of important  factors  discussed
herein, and in other reports filed with the Securities and Exchange  Commission,
could affect the  Company's  actual  results and cause actual  results to differ
materially from those discussed in forward-looking statements.


Results of Operations


Three Months Ended June 30, 1998 vs. 1997

Net operating  revenue for the second  quarter of 1998 was  $4,851,176  compared
with  $5,025,395  for the same period in 1997, a decrease of $174,219,  or 3.5%.
The decrease is primarily  attributable  to the  expiration of the Company's two
cruise ship  concession  contracts in May 1997 and January 1998.  Casino revenue
from Womacks/Legends  Casino decreased 1.1% to $4,774,000 from $4,829,578 a year
earlier.  The slight  revenue  decrease  was in line with the decrease in casino
revenue  experienced by the Cripple Creek market as a whole, as  Womacks/Legends
Casino's market share held steady at 17.2% year over year. This market share was
maintained  despite the  discontinuation  of certain marketing  programs,  which
translated  to  a  substantial  margin  improvement.  Casino  gross  margin  for
Womacks/Legends Casino improved to 61.1% from 44.0% in the year- earlier period.
Contributing most significantly to the margin improvement was the elimination of
costs of the casino's busing and logojet marketing  programs.  Also contributing
to the improved  margin were lower payroll costs and a lower  effective tax rate
on gaming revenue. The lower effective gaming tax rate is due to a change in the
taxing  authority's fiscal year end to June 30, resulting in a nine-month fiscal
year and a lower revenue base for taxing  purposes.  The change will not have an
effect on the effective rate for future reporting periods.

                                     - 11 -

<PAGE>


Food and beverage  revenue  decreased 6.0% to $220,483 versus the second quarter
of 1997. The cost of food and beverage promotional allowances, which is included
in casino costs, decreased to $247,460 in the second quarter of 1998 as compared
with  $260,506  in the  prior  year.  The  decrease  in other  revenue  resulted
principally  from a decline in concession fees from the cruise ships  coincident
with the expiration of those agreements.

General and administrative  expense as a percentage of net operating revenue was
27.5% for the  second  quarter  of 1998 as  compared  with  25.6% for 1997.  The
increase  was  due  primarily  to  a  higher  headcount  in  the  administrative
departments.  The cost of this headcount increase, however, was more than offset
by lower payroll costs of casino operations.

Depreciation expense increased to $415,530 from $387,262,  while amortization of
goodwill  remained  unchanged  at $335,376  for both  periods.  The  increase in
depreciation expense is primarily  attributable to ongoing property improvements
at Womacks/Legends Casino.

Other  expense,  net,  for the second  quarter  of 1998  comprised  $233,715  of
interest expense, $28,874 of interest income, a loss of $2,594 from the disposal
of fixed assets,  and  amortization  of deferred costs of $24,681 related to the
Wells Fargo refinancing. Other expense, net, for the prior year period consisted
of $315,861 of interest  expense,  $40,956 of interest income, a loss of $45,373
from the  disposal  of fixed  assets,  and  amortization  of  deferred  costs of
$21,741.

The income tax  provision  for both  periods is based upon  estimated  full-year
income for financial  reporting purposes adjusted for permanent  differences and
utilization  of available  net  operating  loss  carryforwards  and  alternative
minimum tax credit  carryforwards.  The income tax  provision of $20,000 for the
1997  period  excludes  a benefit of $40,000  associated  with an  extraordinary
charge that is reported as a separate component of operations.


Six Months Ended June 30, 1998 vs. 1997

Net operating  revenue  decreased by $282,320 to  $9,196,259  for the six months
ended June 30, 1998,  as compared with the 1997 period,  principally  due to the
expiration of the Company's two cruise ship concession contracts. Casino revenue
from Womacks/Legends Casino decreased slightly to $9,019,653, which represents a
16.8% share of the Cripple  Creek  market as  compared  with 17.2% in 1997.  The
year-to-date  decrease is mainly attributable to the first quarter of 1998, when
the casino discontinued its busing and logojet marketing programs. Casino margin
for the current year period was 60.4%  versus 43.0% in 1997.  In addition to the
elimination of the busing and logojet programs, payroll costs decreased, and the
effective  gaming  tax rate was  lower as a result of the  change in the  taxing
authority's fiscal year.

Food and beverage  revenue  decreased  from $443,744 to $396,961,  a decrease of
10.5% from the prior year.  The decrease  corresponds to a decrease in the level
of promotional meals and drinks. The cost of promotional allowances, included in
casino costs,  decreased  14.1%.  The decrease in other revenue from $109,385 in
1997 to $44,177 in 1998,  is due to the decline in  concession  revenue from the
expiration  of  Company's  cruise  ship  contracts  and lower gift shop sales at
Womacks/Legends Casino.

General and  administrative  expense,  as a percentage of net operating revenue,
increased  from  27.4% to  29.1%  The  increase  was due  primarily  to a higher
headcount  in  the  administrative  departments.  The  cost  of  this  headcount
increase,  however,  was more  than  offset  by lower  payroll  costs of  casino
operations.

Depreciation expense increased to $846,493 from $737,387,  while amortization of
goodwill  remained  unchanged  at $335,376  for both  periods.  The  increase in
depreciation expense is primarily  attributable to ongoing property improvements
at Womacks/Legends Casino.

                                     - 12 -

<PAGE>


In March 1998 the Company  negotiated an early settlement of its note receivable
from SSK Game Enterprises,  Inc.  ("SSK"),  with respect to the Company's casino
management  agreement  with the Soboba  Band of Mission  Indians in  California,
which  agreement  was  terminated  in August  1995.  The Company  received  cash
payments,  included  in "other  expense,  net,"  totaling  $550,000 in the first
quarter of 1998.  Aggregate  payments  received pursuant to the note from August
1995  through date of  settlement  were  $2,475,000,  of which  $1,843,000  were
applied to recovery of capitalized costs and $632,000 were recognized in income.
No further payments will be received under the note.

On April 21, 1998,  the Company was informed that the  consortium  with which it
had filed a gaming license application for the province of Gauteng, South Africa
was not awarded one of the two remaining licenses for the province. Accordingly,
the Company  provided an  impairment  allowance  of $196,022  against its entire
equity investment in the license applicant in the first quarter of 1998.

In addition to the payments  received from SSK and the provision for  impairment
previously  described,  other  expense,  net,  for the first six  months of 1998
consisted of $454,236 of interest expense, $60,789 of interest income, a gain of
$46,842 from the disposal of fixed assets,  amortization  of deferred debt costs
of $49,151,  and expense of $97,850  related to expired  trade  credits  from an
equipment supplier.  Other expense,  net, for the prior year period consisted of
$526,377 of interest expense, $78,758 of interest income, a loss of $46,133 from
the  disposal  of fixed  assets,  and  amortization  of  deferred  debt costs of
$21,741.

The income tax benefit of $293,000 for the 1998  year-to-date  period includes a
nonrecurring  credit of $815,000  resulting  from the reversal of the  valuation
allowance previously provided against the Company's net deferred tax assets. The
remaining  provision of $522,000 is based upon  estimated  full-year  income for
financial reporting purposes, adjusted for permanent differences and utilization
of available net operating loss carryforwards and alternative minimum tax credit
carryforwards.  The income tax benefit of $102,000 for the year-earlier  period,
which excludes a benefit of $40,000 associated with an extraordinary  charge, is
based on estimated full-year income for financial  reporting purposes,  adjusted
for permanent differences and utilization of available NOLs.


Liquidity and Capital Resources

Cash, cash equivalents and short-term investments totaled $3,217,543 at June 30,
1998, and the Company had net working capital of $827,645.  Additional liquidity
may be provided by the Company's  revolving  credit facility  ("RCF") with Wells
Fargo  Bank,  under  which  the  Company  had  unused   borrowing   capacity  of
approximately  $3 million at June 30,  1998.  For the six months  ended June 30,
1998,  cash provided by operations was $2,003,573 as compared with $1,144,767 in
the prior year period, with most of the increase  attributable to the operations
of Womacks/Legends  Casino. Cash used in investing activities for the first half
of 1998 included property and equipment additions of $4,544,718, the purchase of
commercial paper for $503,895, and payments of $534,000 to two former principals
of Gold  Creek  in  partial  settlement  of the  Company's  remaining  financial
obligation  arising from its  acquisition  of Gold Creek's  assets in 1996.  The
Company  had net  borrowings  under  its RCF with  Wells  Fargo  of  $2,563,953,
principally to acquire real property  adjacent to  Womacks/Legends  Casino,  and
repurchased outstanding common stock in the amount of $610,742.

The  Company is  considering  construction  of a hotel with 30 to 50 rooms and a
two-level  parking garage,  directly across the street from the  Womacks/Legends
Casino.  Although  the Company is still  reviewing  architectural  plans and the
construction cost has not been determined,  management  believes it will be able
to finance the  construction  cost  through a  combination  of working  capital,
operating cash flow and borrowing capacity under the RCF.

                                     - 13 -

<PAGE>


In February  1998,  the Company's  Board of Directors  approved a  discretionary
program  to  repurchase  up to $1 million of the  Company's  outstanding  common
stock.  Through June 30, 1998, the Company had repurchased  545,500 shares at an
average cost of $1.12.

In March 1998 the Company  entered into a joint venture  agreement  with a Czech
subsidiary of Bau Holding AG, one of the largest  construction  and  development
companies in Europe,  to form Century Casinos Praha a.s. The Company was to hold
a 49%  interest in the  venture,  which will  operate a casino in the  five-star
Marriott  Hotel,   currently  under  construction  in  Prague,  Czech  Republic.
Subsequent  to  signing  the joint  venture  agreement,  laws  governing  casino
licenses in the Czech  Republic  were changed to preclude a foreign  entity from
holding  an equity  interest  in a casino  license.  The  Company  is  presently
negotiating an agreement whereby it would manage the casino operations  pursuant
to a ten-year  management  agreement for a fee based upon gross casino  revenue,
and the Company would lease gaming equipment with a value of approximately  $1.2
million to the casino.  The Company  would  likely  finance its  purchase of the
equipment  through either its current cash position or a combination of cash and
vendor financing.  A definitive agreement,  however, has not yet been finalized.
The opening of the hotel and casino is currently  scheduled,  subject to change,
for the second quarter of 1999.

On April  21,  1998,  a  consortium  that  includes  the  Company  submitted  an
application for a gaming license in the province of KwaZulu Natal, South Africa.
The province may award up to five gaming licenses. The consortium's  application
is for a $35 million multipurpose entertainment resort in the city of Empangeni.
The Company would manage the 520-gaming  position  casino  pursuant to a 15-year
management  agreement.  The Company has received a three percent equity interest
in the consortium in consideration  of services  rendered during the application
phase,   and  may  acquire  an  additional   five  percent  of  the  equity  for
approximately $500,000 upon licensing. The additional equity investment would be
funded through the Company's working capital. Detailed applications are required
to be filed by August 10,  1998,  and  preferred  finalists  are  expected to be
announced  at the end of October  1998.  The KwaZulu  Natal  Gambling  Board has
indicated that final licenses will be awarded in February 1999.

The Company holds a small equity position in Great North Resorts Limited,  which
has submitted a license application for Pietersburg, the capital of the Northern
Province,  South Africa. If successful in receiving a license, the Company would
provide consulting/management  services with respect to the casino operations of
a proposed $40 million casino, hotel,  entertainment and resort complex pursuant
to a five-year  agreement  commencing with the opening of the permanent  casino.
The Company  would also provide  consulting/management  services with respect to
the operations of a temporary casino during the development  phase of the resort
complex.  The Company  would earn fees based on a  percentage  of annual  gaming
revenue.  The Company has no significant  additional  capital  obligations  with
respect to this application.  The licensing process in the Northern Province has
been halted by the South  African  Supreme  Court  pending an  investigation  of
alleged improprieties by the Northern Province Casino and Gaming Board.

On November 28, 1997, the Kamloops Indian Band of British  Columbia,  Canada, in
cooperation with the Company, presented a proposal for a $40 million destination
casino resort complex to the British Columbia Lottery  Advisory  Committee.  The
Company  has  reached  an   agreement   in   principle   to  become  the  casino
management/consulting  partner in case of license award.  The Company was paid a
fee in 1997 for its  consulting  services  in  connection  with the  application
process,  and final terms of the management  agreement will be negotiated in the
event licensing details become  available.  The Company has been informed that a
decision will be made on the license application in September 1998.

                                     - 14 -

<PAGE>


In the second  quarter  of 1998,  the  Company  reached a  consulting  agreement
("current  agreement") with Rhodes Casino S.A. and Playboy Gaming  International
Ltd.  ("Playboy")  to assign  certain of the  Company's  rights and delegate its
responsibilities under a previously executed management and consulting agreement
("previous  agreement") pertaining to the operation of a casino on the island of
Rhodes,  Greece.  The Company  will receive from Playboy a payment of $25,000 in
respect of all services  performed to date,  and annual  payments of $50,000 for
each of the first three years of the casino's operations.  The Company will have
no further  obligations under the previous  agreement unless,  subsequent to the
opening of the  casino,  Playboy  is  unwilling  or unable to perform  under the
current  agreement.  In such event,  the previous  agreement,  and the Company's
obligations, would be reinstated together with the Company's right to receive up
to $300,000  per year for the first three  years of casino  operations,  with an
aggregate minimum guarantee of approximately $250,000.

Management  believes that the  Company's  working  capital  position at June 30,
1998,  together with expected cash flow from  operations and borrowing  capacity
under its  revolving  credit  facility,  will be  adequate  to satisfy  its debt
repayment  obligations,  meet its anticipated  capital  expenditures  and pursue
additional business growth opportunities for the foreseeable future.


                         * * * * * * * * * * * * * * * *


PART II


OTHER INFORMATION


Item 1. - Legal Proceedings

     The  Company  is not a  party  to,  nor is it  aware  of,  any  pending  or
     threatened litigation which, in management's opinion, could have a material
     adverse  effect  on  the  Company's   financial   position  or  results  of
     operations.


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


 (a) Exhibits - The following exhibits are filed herewith:

     10.71     Termination of Stock Transfer and  Registration  Rights Agreement
               dated May 1, 1998,  between  Century  Casinos,  Inc.  and Gary Y.
               Findlay

     10.72     Promissory Note dated April 30, 1998,  between  Century  Casinos,
               Inc. and Gary Y. Findlay

     10.73     Termination of Stock Transfer and  Registration  Rights Agreement
               dated June 2, 1998,  between Century  Casinos,  Inc. and James A.
               Gulbrandsen

     10.74     Promissory  Note  dated June 2, 1998,  between  Century  Casinos,
               Inc. and James A. Gulbrandsen

                                     - 15 -

<PAGE>


     10.75     Commercial  Contract to Buy and Sell Real Estate  dated  November
               19, 1997, between WMCK Venture Corp. and Hal D. Hicks

     10.76     Casino Consulting  Agreement dated March 25, 1998, by and between
               Rhodes  Casino S.A.,  Century  Casinos,  Inc. and Playboy  Gaming
               International Ltd.

     27        Financial Data Schedule


 (b) Reports on Form 8-K:


     No reports on Form 8-K were filed during the quarter ended June 30, 1998.


                                  * * * * * * *

SIGNATURES:

Pursuant to 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.


CENTURY CASINOS, INC.


/s/  Brad Dobski
     ---------------------------
     Brad Dobski
     Vice President - Finance,
      Chief Accounting Officer and duly authorized officer

     Date: August 4, 1998

                                     - 16 -