**Exhibit
      10.12**




(GAMETECH
      LOGO)




April
      10,
      2006




John
      McCafferty




Dear
      John,




Congratulations
      and welcome to GameTech International, Inc. This correspondence serves as
      confirmation of our offer of employment to you as V.P. of Product Marketing.
      This position is an important one to our organization and we look forward to
      the
      contributions you will bring to GameTech and its Executive Team. We anticipate
      your start date to be May 17, 2006.




As
      V.P.
      of Product Marketing your responsibilities will include Sales, Product Marketing
      and Product Management. We are prepared to offer you a salary of $200k per
      year,
      with the opportunity for a review after 90 days of employment. With this
      position, you will be able to participate in the Executive Team Bonus Plan.
      At
      the outset, we will offer a stock option grant of 125,000 shares, vesting at
      the
      end of a one year period. This stock option grant will be subject to board
      approval.




In
      addition to the above compensation package, we are prepared to offer you
      relocation assistance up to $30,000. Please refer to GameTech’s Relocation
      Policy for a complete list of approved expenses. After completing six months
      of
      employment your principal residence should be located in the Reno, NV area.




Should
      your employment terminate with GameTech for “Cause”, or should you decide to
      terminate your employment, prior to completing one year of service, you will
      be
      responsible for reimbursing the company for all relocation expenses paid on
      your
      behalf. In the event that there is a change of control, all your stock options
      will vest immediately. “Cause” means any conduct that may jeopardize any license
      in any jurisdiction that the company does or seeks to do business; performance
      of work in a manner that is not professional, including dishonesty or
      insubordination; conviction for any felony; or other conduct injurious to the
      company or its reputation. "Change of control" means (i) the company merges
      with
      another entity, or (ii) that any “person” or “group” becomes the “beneficial
      owner” of more than fifty percent (50%) of the total voting power entitled to
      vote in the election of the Board of Directors, excluding any person or group
      that is the beneficial owner of more than five percent (5%) of the total voting
      power as of the date of this letter. “Person”, “group” and “beneficial owner”
are defined in Sections 13(d) and 14(d) and Rule 13(d) of the Securities
      Exchange Act of 1934.




GameTech
      also offers a rich benefits package including Medical, Dental, Vision, 401K,
      Disability and Life insurance for you. You will be eligible for these benefits
      the first of the month following 30 days of employment. In addition, you will
      accrue a total of 3 weeks of Paid Time Off during your first year of employment.
      Many more benefits will be described in the Plan Package.




We
      do let
      all new employees know that we are an “at will” employer and either the employee
      or the employer may terminate the employment relationship at any time with
      or
      without prior notice.




We
      are so
      pleased to have the opportunity to work with you and look forward to your
      participation with us. We wish you the best for success in your new position.
      Please sign in the space provided below as acceptance of this offer. A copy
      will
      be made for your own personal file.




Kind
      Regards,




/s/
                  Kay O’Brien
              
              /s/
                  John McCafferty
              
              5/22/06Kay
                  O’Brien
              
              John
                  McCafferty
              
              DateDirector
                of Human
                Resources




cc:
            Jay
                MeilstrupScott
                ShackeltonEmployee
                File





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