| [X] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| [      ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------|----------------------------------------------------------------------------------------------------|

| GAMCO      INVESTORS, INC.                                               |
|--------------------------------------------------------------------------|
| (Exact      name of Registrant as specified in its charter)              |
|                                                                     |   |   |   |
| New      York                                                            |   |   | 13-4007862 |
| (State      of other jurisdiction of incorporation      or organization) |   |   | (I.R.S.      Employer Identification      No.) |
|                                                                     |   |   |   |   |
| One      Corporate Center, Rye, NY                                       |   |   | 10580-1422 |
| (Address      of principle executive offices)                            |   |   | (Zip      Code) |
|                                                                     |   |   |   |   |
| (914)      921-5100                                                      |
| Registrant’s      telephone number, including areacode             |

| Yes | x | No | o |
|-----|---|----|---|

| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.  See the definitions of “large accelerated filer",      "accelerated filer", and "smaller reporting company” in Rule 12b-2 of the      Exchange Act. (Check one): |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                              |
| Large      accelerated filer  ̈                                                                                                                                                                                                                                                                                                                               |   | Accelerated      filer x |   |
|                                                                                                                                                                                                                                                                                                                                                              |   |   |   |
| Non-accelerated      filer o                                                                                                                                                                                                                                                                                                                                      |   | Smaller      reporting company o |   |

| Yes | o | No |  x |
|-----|---|----|---------|

| Class                                     |   | Outstanding at July 31,2008 |   |
|-------------------------------------------|--------|-----------------------------|--------|
| Class      A Common Stock, .001 par value |   | 7,316,045                   |   |
| Class      B Common Stock, .001 par value |   | 20,626,644                  |   |

----

| INDEX                                       |
|---------------------------------------------|
|                                        |
| GAMCO      INVESTORS, INC. AND SUBSIDIARIES |
|                                        |   |
|                                        |   |
| PART      I.                                | FINANCIAL      INFORMATION |   |   |   |
|                                        |   |
|                                        |   |
| Item      1.                                | Unaudited      Condensed Consolidated Financial Statements |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Income: |
|                                        | -    Three      months ended June 30, 2008 and 2007 |
|                                        | -    Six      months ended June 30, 2008 and 2007 |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Financial Condition: |
|                                        | -    June      30, 2008 |
|                                        | -    December      31, 2007 (audited) |
|                                        | -    June      30, 2007 |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Stockholders’ Equity and Comprehensive      Income: |
|                                        | -    Six      months ended June 30, 2008 and 2007 |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Cash Flows: |
|                                        | -    Six      months ended June 30, 2008 and 2007 |
|                                        |   |
|                                        | Notes      to Condensed Consolidated Financial Statements |
|                                        |   |
| Item      2.                                | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|                                        | (Including      Quantitative and Qualitative Disclosure      about Market Risk) |
|                                        |   |
| Item      3.                                | Quantitative      and Qualitative      Disclosures About Market      Risk |
|                                        |   |
| Item      4.                                | Controls      and Procedures |
|                                        |   |
| PART      II.                               | OTHER      INFORMATION |   |   |   |   |
|                                        |   |
| Item      2.                                | Changes      in Securities, Use of Proceeds and Issuer Purchases of Equity      Securities |
|                                        |   |
| Item      4.                           | Submission of Matters to      a Vote of Security Holders |
|                                        |   |
| Item      6.                                | Exhibits |
|                                        |   |
|                                        |   |
|                                        |   |
| SIGNATURES                                  |   |
|                                        |   |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES      |
|--------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME |
| UNAUDITED                                        |
| (In      thousands, except per share data)       |
|                                             |

|                                                  |   | Three      Months Ended |   |   | Six      Months Ended |   |
|-------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                  |   | June      30,           |   |   | June      30,         |   |
|                                                  |   | 2008                    |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Revenues                                              |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Investment      advisory and incentive fees           |   | $                       | 55,131 |   |                  | $      | 57,654 |   |   | $ | 111,972 |   |   | $ | 114,214 |   |
| Commission      revenue                               |   |                    | 3,664  |   |                  |   | 4,036 |   |   |   | 6,920 |   |   |   | 8,056 |   |
| Distribution      fees and other income               |   |                    | 6,629  |   |                  |   | 6,587 |   |   |   | 13,080 |   |   |   | 12,613 |   |
| Total      revenues                                   |   |                    | 65,424 |   |                  |   | 68,277 |   |   |   | 131,972 |   |   |   | 134,883 |   |
| Expenses                                              |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Compensation      costs                               |   |                    | 27,763 |   |                  |   | 29,905 |   |   |   | 56,610 |   |   |   | 58,279 |   |
| Management      fee                                   |   |                    | 2,586  |   |                  |   | 3,449 |   |   |   | 4,567 |   |   |   | 6,850 |   |
| Distribution      costs                               |   |                    | 6,794  |   |                  |   | 10,161 |   |   |   | 13,203 |   |   |   | 16,047 |   |
| Other      operating expenses                         |   |                    | 7,074  |   |                  |   | 7,594 |   |   |   | 13,128 |   |   |   | 16,028 |   |
| Total      expenses                                   |   |                    | 44,217 |   |                  |   | 51,109 |   |   |   | 87,508 |   |   |   | 97,204 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                 |   |                    | 21,207 |   |                  |   | 17,168 |   |   |   | 44,464 |   |   |   | 37,679 |   |
| Other      income (expense)                           |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      gain (loss) from investments                 |   |                    | 10     |   |                  |   | 11,193 |   |   |   | (8,379 | )  |   |   | 16,763 |   |
| Interest      and dividend income                     |   |                    | 4,196  |   |                  |   | 6,166 |   |   |   | 8,970 |   |   |   | 14,168 |   |
| Interest      expense                                 |   |                    | (2,199 | )      |                  |   | (3,329 | ) |   |   | (4,266 | ) |   |   | (6,709 | ) |
| Total      other income (expense), net                |   |                    | 2,007  |   |                  |   | 14,030 |   |   |   | (3,675 | )  |   |   | 24,222 |   |
| Income      before income taxes and minority interest |   |                    | 23,214 |   |                  |   | 31,198 |   |   |   | 40,789 |   |   |   | 61,901 |   |
| Income      tax provision                             |   |                    | 8,719  |   |                  |   | 12,856 |   |   |   | 16,045 |   |   |   | 24,063 |   |
| Minority      interest                                |   |                    | 36     |   |                  |   | 345 |   |   |   | (201 | )  |   |   | 677 |   |
| Net      income                                       |   | $                       | 14,459 |   |                  | $      | 17,997 |   |   | $ | 24,945 |   |   | $ | 37,161 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share:                            |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                 |   | $                       | 0.52   |   |                  | $      | 0.64 |   |   | $ | 0.89 |   |   | $ | 1.32 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                               |   | $                       | 0.51   |   |                  | $      | 0.63 |   |   | $ | 0.89 |   |   | $ | 1.30 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:             |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                 |   |                    | 27,948 |   |                  |   | 28,160 |   |   |   | 28,070 |   |   |   | 28,194 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                               |   |                    | 28,743 |   |                  |   | 29,147 |   |   |   | 28,896 |   |   |   | 29,172 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared:                              |   | $                       | 0.03   |   |                  | $      | 0.03 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |
|                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes.                          |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                                                                                                    |   |
| (In      thousands)                                                                                                                                              |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                             |   | June      30, |   |   | December      31, |   |   |  June      30, |   |   |
|                                                                                                                                                             |   | 2008 |   |   | 2007 |   |   |  2007 |   |   |
|                                                                                                                                                             |   |  (unaudited) |   |   |   |   |   |  (unaudited) |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, including restricted cash of $0, $0, and      $443                                                                               |   | $ | 266,344 |   |   | $ | 168,319 |   |  $ |  104,726 |   |   |
| Investments      in securities, including restricted securities of $0, $0, and      $52,117                                                                      |   |   | 319,833 |   |   |   | 394,977 |   |   |  550,273 |   |   |
| Investments      in partnerships and affiliates                                                                                                                  |   |   | 77,955 |   |   |   | 100,031 |   |   |  69,869 |   |   |
| Receivable      from brokers                                                                                                                                     |   |   | 21,936 |   |   |   | 40,145 |   |   |  43,187 |   |   |
| Investment      advisory fees receivable                                                                                                                         |   |   | 17,434 |   |   |   | 33,701 |   |   |  18,439 |   |   |
| Other      assets                                                                                                                                                |   |   | 20,643 |   |   |   | 20,407 |   |   |  19,577 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                                |   | $ | 724,145 |   |   | $ | 757,580 |   |  $ |  806,071 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Payable      to brokers                                                                                                                                          |   | $ | 4,888 |   |   | $ | 7,562 |   |  $ |  30,973 |   |   |
| Income      taxes payable, including deferred taxes of $3,201, $5,814, and      $10,012                                                                          |   |   | 5,546 |   |   |   | 17,539 |   |   |  14,951 |   |   |
| Compensation      payable                                                                                                                                        |   |   | 29,162 |   |   |   | 25,362 |   |   |  46,075 |   |   |
| Capital      lease obligation                                                                                                                                    |   |   | 2,377 |   |   |   | 2,525 |   |   |  2,659 |   |   |
| Securities      sold, not yet purchased                                                                                                                          |   |   | 2,105 |   |   |   | 2,229 |   |   |  21,021 |   |   |
| Accrued      expenses and other liabilities                                                                                                                      |   |   | 18,094 |   |   |   | 38,810 |   |   |  35,597 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating liabilities                                                                                                                                 |   |   | 62,172 |   |   |   | 94,027 |   |   |  151,276 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Long      term liabilities                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| 5.5%      Senior notes (due May 15, 2013)                                                                                                                        |   |   | 100,000 |   |   |   | 100,000 |   |   |  100,000 |   |   |
| 6%      Convertible note (due August 14, 2011) (A)                                                                                                               |   |   | 39,726 |   |   |   | 49,608 |   |   |  49,561 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total      liabilities                                                                                                             |   |   | 201,898 |   |   |   |  243,635 |   |   |  300,837 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Minority      interest                                                                                                                                           |   |   | 11,318 |   |   |   |  12,630 |   |   |  14,441 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Class      A Common Stock, $0.001 par value; 100,000,000                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|     shares      authorized; 12,757,024, 12,574,995, 12,172,423                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|     issued,      respectively; 7,549,145, 7,819,741, and 7,489,369    outstanding,      respectively                |   |   | 12 |   |   |   | 12 |   |   |  12 |   |   |
| Class      B Common Stock, $0.001 par value; 100,000,000                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|     shares      authorized; 24,000,000 shares issued,    20,626,644,      20,626,644, 20,645,816 shares outstanding |   |   | 21 |   |   |   | 21 |   |   |  21 |   |   |
| Additional      paid-in capital                                                                                                                                  |   |   | 243,449 |   |   |   | 230,483 |   |   |  230,010 |   |   |
| Retained      earnings                                                                                                                                           |   |   | 468,365 |   |   |   | 445,121 |   |   |  432,542 |   |   |
| Accumulated      comprehensive gain                                                                                                                              |   |   | 17,445 |   |   |   | 20,815 |   |   |  19,791 |   |   |
| Treasury      stock, at cost (5,207,879, 4,755,254, and 4,683,054 shares,      respectively)                                                                |   |   | (218,363 | )  |   |   | (195,137 | )  |   |  (191,583 | )  |   |
| Total      stockholders' equity                                                                                                                                  |   |   | 510,929 |   |   |   | 501,315 |   |   |  490,793 |   |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders' equity                                                                                                                  |   | $ | 724,145 |   |   | $ | 757,580 |   |  $ |  806,071 |   |   |

|                                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |
| See accompanying      notes.                                                                                                 |
|                                                                                                                         |
| (A) $50 million      outstanding on December 31, 2007 and June 30, 2007. $40 million      outstanding on June 30, 2008. |
|                                                                                                                         |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                                                        |
|----------------------------------------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE      INCOME |
| UNAUDITED                                                                                          |
|  (In      thousands)                                                                          |
|                                                                                               |

|                                                                               |   |    |  Three      Months Ended |    |    | Six      Months Ended |    |
|------------------------------------------------------------------------------------|--------|---------|-------------------------------|---------|---------|-----------------------|---------|
|                                                                               |   |    |  June      30,           |    |    | June      30,         |    |
|                                                                               |   |    |  2008                    |    |    |  2007            |    |   | 2008 |   |   | 2007 |   |
| Stockholders’      equity – beginning of period                        |   | $  | 507,862                       |    | $  | 467,488               |    |   | $ | 501,315 |   |   | $ | 451,576 |   |
|                                                                               |   |    |                          |    |    |                  |    |   |   |   |   |   |   |   |   |
| Cumulative      effect of applying the provisions of FIN 48at      January 1, 2007 |   |    | -                             |    |    | -                     |    |   |   | - |   |   |   | (822 | )  |
|                                                                               |   |    |                          |    |    |                  |    |   |   |   |   |   |   |   |   |
| Comprehensive      income:                                                         |   |    |                          |    |    |                  |    |   |   |   |   |   |   |   |   |
|   Net      income                                                        |   |    | 14,459                        |    |    | 17,997                |    |   |   | 24,945 |   |   |   | 37,161 |   |
|   Foreign      currency translation adjustments                          |   |    | (21                           | )  |    | 12                    |    |   |   | - |   |   |   | 13 |   |
|   Net      unrealized gain/(loss) on securities available for sale       |   |    | 730                           |    |    | 8,666                 |    |   |   | (3,371 | )  |   |   | 9,352 |   |
| Total      comprehensive income                                                    |   |    | 15,168                        |    |    | 26,675                |    |   |   | 21,574 |   |   |   | 46,526 |   |
|                                                                               |   |    |                          |    |    |                  |    |   |   |   |   |   |   |   |   |
| Dividends      declared                                                            |   |    | (844                          | )       |    | (844                  | )  |   |   | (1,700 | ) |   |   | (1,691 | ) |
| Stock      based compensation expense                                              |   |    | 1,204                         |    |    | 24                    |    |   |   | 2,402 |   |   |   | 45 |   |
| Conversion      of 6% convertible note                                             |   |    | -                             |    |    | -                     |    |   |   | 10,000 |   |   |   | - |   |
| Exercise      of stock options including tax benefit                               |   |    | (48                           | )  |    | 194                   |    |   |   | 564 |   |   |   | 266 |   |
| Purchase      of treasury stock                                                    |   |    | (12,413                       | )  |    | (2,744                | )  |   |   | (23,226 | ) |   |   | (5,107 | ) |
| Stockholders’      equity – end of period                              |   | $  | 510,929                       |    | $  | 490,793               |    |   | $ | 510,929 |   |   | $ | 490,793 |   |
|                                                                               |   |    |                          |    |    |                  |    |   |   |   |   |   |   |   |   |
| See      accompanying notes.                                                       |   |    |                          |    |    |                  |    |   |   |   |   |   |   |   |   |

----

|  GAMCO      INVESTORS, INC. AND    SUBSIDIARIES |
|------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS |
|  UNAUDITED                                      |
|  (In      thousands)                            |
|                                                 |

|                                                                                                                                  |   | Six      Months Ended |                 |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|----------------------|
|                                                                                                                                  |   | June      30,         |                 |
|                                                                                                                                  |   | 2008                  |                 |   | 2007 |   |
| Operating      activities                                                                                                        |   |                  |                 |   |   |   |
| Net      income                                                                                                                       |   | $                     |  24,945         |   |   |  $ |  37,161 |   |
|  Adjustments      to reconcile net income to net cash provided      by operating activities:                                |   |                  |                 |   |   |   |   |   |
|                                                                                                                                  |   |                  |                 |   |   |   |   |   |
|   Equity      in net gains from partnerships and affiliates                                                       |   |                  |        1,498    |   |   |   |        (4,744 | )  |
|   Depreciation      and amortization                                                                              |   |                  |        483      |   |   |   |        522 |   |
|   Stock      based compensation expense                                                                      |   |                  |        2,402    |   |   |   |        45 |   |
|   Deferred      income tax                                                                                        |   |                  | 858                  |   |   |   |        4,905 |   |
|   Tax      (expense) benefit from exercise of stock      options                                        |   |                  |        (6       | )  |   |   |        57 |   |
|   Foreign      currency loss                                                                                 |   |                  |        -        |   |   |   |        13 |   |
|   Other-than-temporary      loss on available for sale securities                                                           |   |                  |        262      |   |   |   |        - |   |
|   Impairment      of goodwill                                                                                |   |                  | -                    |   |   |   |        56 |   |
|        Acquisition of intangible asset                                                                                           |   |                  |        (3,479   | )  |   |   |        - |   |
|   Market      value of donated securities                                                                    |   |                  |        157      |   |   |   |        122 |   |
|   Minority      interest in net income of consolidated subsidiaries                                                         |   |                  |        3        |   |   |   |        520 |   |
|   Realized      gains on sales of available for sale securities                                                             |   |                  |        (415     | )  |   |   |        (473 | )  |
|   Realized      gains on sales of trading investments in securities, net                                                    |   |                  |        (3,209   | )  |   |   |        (11,874 | )  |
|   Change      in unrealized value of trading investments in securities and securities      sold, not yet purchased, net     |   |                  |        9,249    |   |   |   |        (2,498 | ) |
|        Realized (gains) losses on covers of securities sold, not yet      purchased, net                                    |   |                  |        (378     | )  |   |   |        979 |   |
|   Amortization      on discount on debt                                                                                |   |                  |        118      |   |   |   |        56 |   |
| (Increase)      decrease in operating assets:                                                                                         |   |                  |                 |   |   |   |   |   |
|    Purchases      of trading investments in securities                                                                 |   |                  |        (221,966 | )  |   |   |        (809,424 | )  |
|    Proceeds      from sales of trading investments in securities                                                       |   |                  |        282,645  |   |   |   |        816,521 |   |
|         Cost of covers on securities sold, not yet purchased                                                                |   |                  |        (18,481  | )  |   |   |        (49,161 | )  |
|         Proceeds from sales of securities sold, not yet purchased                                                           |   |                  |        19,015   |   |   |   |        65,145 |   |
|    Investments      in partnerships and affiliates                                                                |   |                  |        (182     | )  |   |   |        (4,050 | )  |
|    Distributions      from partnerships and affiliates                                                            |   |                  |        20,626   |   |   |   |        13,149 |   |
|    Receivable      from brokers                                                                                        |   |                  |        15,738   |   |   |   |        10,022 |   |
|    Investment      advisory fees receivable                                                                       |   |                  |        16,367   |   |   |   |        12,681 |   |
|    Other      receivables from affiliates                                                                         |   |                  |        2,950    |   |   |   |        5,106 |   |
|    Other      assets                                                                                         |   |                  |        (194     | )  |   |   |        (153 | )  |
| Increase      (decrease) in operating liabilities:                                                                                    |   |                  |                 |   |   |   |   |   |
|    Payable      to brokers                                                                                        |   |                  |        (3,443   | )  |   |   |        (3,957 | ) |
|    Income      taxes payable                                                                                      |   |                  |        (9,541   | )  |   |   |        (9,562 | )  |
|    Compensation      payable                                                                                           |   |                  |        4,567    |   |   |   |        14,289 |   |
|    Accrued      expenses and other liabilities                                                                         |   |                  |        (20,819  | )  |   |   |        (5,050 | )  |
| Effects      of consolidation of investment partnerships and offshore funds      consolidated under      FIN 46R and EITF 04-5:       |   |                  |                 |   |   |   |   |   |
| Realized gains      on sales of investments in securities and securities sold, not yet      purchased, net                       |   |                  |        (17      | )  |   |   |        (607 | ) |
| Change      in unrealized value of investments in securities and securities sold, not      yet purchased, net                         |   |                  |        511      |   |   |   |        85 |   |
| Equity      in net gains from partnerships and affiliates                                                                             |   |                  |        761      |   |   |   |        (733 | )  |
| Purchases      of trading investments in securities                                                                                   |   |                  |        (6,848   | )  |   |   |        (34,002 | ) |
| Proceeds      from sales of trading investments in securities                                                                         |   |                  |        7,105    |   |   |   |        34,074 |   |
| Cost      of covers on securities sold, not yet purchased                                                                             |   |                  |  (11            | )  |   |   |  (434 | )  |
| Proceeds      from sales of securities sold, not yet purchased                                                                        |   |                  |  -              |   |   |   |  477 |   |
| Investments      in partnerships and affiliates                                                                                       |   |                  |        -        |   |   |   |        (2,000 | ) |
| Distributions      from partnerships and affiliates                                                                                   |   |                  |        -        |   |   |   |        825 |   |
| Increase      in investment advisory fees receivable                                                                                  |   |                  |        (100     | )  |   |   |        (26 | ) |
| Decrease in      receivable from brokers                                                                                         |   |                  |        2,471    |   |   |   |        473 |   |
| Decrease      (increase) in other assets                                                                                              |   |                  |        5        |   |   |   |        (244 | )  |
| Increase      (decrease) in payable to brokers                                                                                        |   |                  |        769      |   |   |   |        (1,416 | ) |
| (Decrease)      increase in accrued expenses and other liabilities                                                                    |   |                  |        (48      | )  |   |   |        315 |   |
| (Loss)      income related to investment partnerships and offshore      funds consolidated under FIN 46R and EITF 04-5, net |   |                  |        (1,050   | )  |   |   |        996 |   |
| Total      adjustments                                                                                                           |   |                  |        98,373   |   |   |   |        41,025 |   |
| Net      cash provided by operating activities                                                                              |   |                  |        123,318  |   |   |   |        78,186 |   |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                                 |
|-----------------------------------------------------------------------------|
|  CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS      (continued) |
|  UNAUDITED                                                             |
|  (In      thousands)                                                   |
|                                                                        |

|                                                                                                                                                                                          |   | Six      Months Ended |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|
|                                                                                                                                                                                          |   | June      30,         |
|                                                                                                                                                                                          |   | 2008                  |   |   |  2007 |   |
|                                                                                                                                                                                          |   |                  |   |   |   |
| Investing      activities                                                                                                                                                                     |   |                  |   |   |   |
| Purchases      of available for sale securities                                                                                                                                               |   |  $               |        (777 | )  |  $ |  (25,254 | )  |
| Proceeds      from sales of available for sale securities                                                                                                                                     |   |                  |        618 |   |   |        2,292 |   |
| Net      cash used in investing activities                                                                                                                                                    |   |                  |        (159 | )  |   |        (22,962 | )  |
|                                                                                                                                                                                          |   |                  |   |   |   |   |   |
| Financing      activities                                                                                                                                                                     |   |                  |   |   |   |   |   |
| Retirement      of 5.22% senior notes                                                                                                                                                         |   |                  |        - |   |   |        (82,308 | )  |
| Contributions      related to investment partnerships and offshore fundsconsolidated      under FIN 46R and EITF 04-5, net                                                                    |   |                  | (169 | ) |   |        511 |   |
| Proceeds      from exercise of stock options                                                                                                                                                  |   |                  |        570 |   |   |        209 |   |
| Dividends      paid                                                                                                                                                                           |   |                  |        (1,700 | )  |   |        (1,691 | )  |
| Dividends      declared on subsidiary stock to minority shareholders                                                                                                                          |   |                  |        (608 | )  |   |        (241 | )  |
| Purchase      of treasury stock                                                                                                                                                               |   |                  |        (23,226 | )  |   |        (5,107 | )  |
| Net      cash used in financing activities                                                                                                                                                    |   |                  |        (25,133 | )  |   |        (88,627 | )  |
| Net      increase (decrease) in cash and cash equivalents                                                                                                                                     |   |                  |        98,026 |   |   |        (33,403 | ) |
| Effect      of exchange rates on cash and cash equivalents                                                                                                                                    |   |                  |        (1 | )  |   |        16 |   |
| Cash      and cash equivalents at beginning of period                                                                                                                                         |   |                  | 168,319 |   |   |   138,113 |   |
| Cash      and cash equivalents at end of period                                                                                                                                               |   | $                     | 266,344 |   | $  | 104,726 |   |
|                                                                                                                                                                                          |   |                  |   |   |   |   |   |
| Non-cash      activity: On January 22, 2008, Cascade Investment LLC elected to      convert $10 million of the 6% convertible note into 188,697 GAMCO      Investors Inc. common shares. |
|                                                                                                                                                                                          |   |                  |   |   |   |   |   |

----

SFAS No. 142 
, "Goodwill and Other IntangibleAssets". Statement142-3 is effectivefor financial statements issued for fiscal years beginning after December15, 2008, and interim periods within those fiscal years. Early adoption isprohibited. The Company plans to adopt this statement on January 1, 2009.Statement 142-3 isapplicable to the Company however, the effect of its adoption is not expected tobe material.

----

| -   | Level      1 inputs utilize quoted prices (unadjusted) in active markets for      identical assets or liabilities.                                                                                                                                                                                                                                                                                                                                             |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Level      2 inputs utilize inputs other than quoted prices included in Level 1 that      are observable for the asset or liability, either directly or indirectly.      Level 2 inputs include quoted prices for similar assets and liabilities in      active markets and inputs other than quoted prices that are observable for      the asset or liability, such as interest rates and yield curves that are      observable at commonly-quotedintervals. |

| -   | Level      3 inputs are unobservable inputs for the asset or liability, and include      situations where there is little, if any, market activity for the asset or      liability.  |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Assets                                  |   | Quoted      Prices in Active Markets for Identical Assets (Level 1) |    |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs (Level 3) |   |   | Balance      as of June 30, 2008 |   |
|-----------------------------------------|--------|---------------------------------------------------------------------|---------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------|--------|
| Cash and cash      equivalents          |   | $                                                                   | 266,344 |   |                                               | $      | -      |                                           |   | $      | -                                |   |   | $ | 266,344 |   |
| Investments in      securities:         |   |                                                                |    |   |                                               |   |   |                                           |   |   |                             |   |   |   |   |   |
|         Available-for-sale    |   |                                                                | 127,126 |   |                                               |   | -      |                                           |   |   | -                                |   |   |   | 127,126 |   |
|         Trading               |   |                                                                | 190,512 |   |                                               |   | 183    |                                           |   |   | 2,012                            |   |   |   |  192,707 |   |
| Total investments in      securities    |   |                                                                | 317,638 |   |                                               |   | 183    |                                           |   |   | 2,012                            |   |   |   | 319,833 |   |
| Total      financial instruments owned  |   | $                                                                   | 583,982 |   |                                               | $      | 183    |                                           |   | $      | 2,012                            |   |   | $ | 586,177 |   |
| Liabilities                             |   |                                                                |    |   |                                               |   |   |                                           |   |   |                             |   |   |   |   |   |
| Securities sold, not      yet purchased |   | $                                                                   | 2,105   |   |                                               | $      | -      |                                           |   | $      | -                                |   |   | $ | 2,105 |   |

----

|                                           |   |                   |   |   | Total      Realized and Unrealized Gains or (Losses) in Income |   |   |        |   |   |                                                                                |   |   |                                                 |   |   |                          |   |   |                                          |   |
|------------------------------------------------|--------|------------------------|--------|--------|----------------------------------------------------------------|--------|--------|-------------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------------------------|--------|
| Asset                                          |   | Beginning      Balance |   |   | Trading                                                        |   |   | Investments |   |   | Total      Unrealized Gains or (Losses) Included in Other Comprehensive      Income |   |   | Total      Realized and Unrealized Gains or (Losses) |   |   | Purchases      and Sales, net |   |   | Net      Transfers In and/or (Out) of Level 3 |   |   | Ending      Balance |   |
| Financial      instruments owned:              |   |                   |   |   |                                                           |   |   |        |   |   |                                                                                |   |   |                                                 |   |   |                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|  Investments      in securities - trading |   | $                      | 1,188  |   |                                                           | $      | (302   | )           |   | $      | -                                                                                   |   |   | $                                                    | -      |   |                          | $      | (302   | )                                             |   | $ | 735 |   |   | $ | 391 |   |   | $ | 2,012 |   |
|  Total                                    |   | $                      | 1,188  |   |                                                           | $      | (302   | )           |   | $      | -                                                                                   |   |   | $                                                    | -      |   |                          | $      | (302   | )                                             |   | $ | 735 |   |   | $ | 391 |   |   | $ | 2,012 |   |

|                                           |   |                   |   |   | Total      Realized and Unrealized Gains or (Losses) in Income |   |   |        |   |   |                                                                                |   |   |                                                 |   |   |                          |   |   |                                          |   |
|------------------------------------------------|--------|------------------------|--------|--------|----------------------------------------------------------------|--------|--------|-------------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------------------------|--------|
| Asset                                          |   | Beginning      Balance |   |   | Trading                                                        |   |   | Investments |   |   | Total      Unrealized Gains or (Losses) Included in Other Comprehensive      Income |   |   | Total      Realized and Unrealized Gains or (Losses) |   |   | Purchases      and Sales, net |   |   | Net      Transfers In and/or (Out) of Level 3 |   |   | Ending      Balance |   |
| Financial      instruments owned:              |   |                   |   |   |                                                           |   |   |        |   |   |                                                                                |   |   |                                                 |   |   |                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|  Investments      in securities - trading |   | $                      | 1,423  |   |                                                           | $      | (537   | )           |   | $      | -                                                                                   |   |   | $                                                    | -      |   |                          | $      | (537   | )                                             |   | $ | 735 |   |   | $ | 391 |   |   | $ | 2,012 |   |
|  Total                                    |   | $                      | 1,423  |   |                                                           | $      | (537   | )           |   | $      | -                                                                                   |   |   | $                                                    | -      |   |                          | $      | (537   | )                                             |   | $ | 735 |   |   | $ | 391 |   |   | $ | 2,012 |   |

----

| (in      thousands, except per share amounts)                                       |   | Three      Months EndedJune      30, 2008 |   |   | Three      Months EndedJune      30, 2007 |   |   | Six      Months EndedJune      30, 2008 |   |   | Six      Months EndedJune      30, 2007 |   |
|-------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|
| Basic:                                                                              |   |                                      |   |   |                                      |   |   |                                         |   |   |                                         |   |
| Net      income                                                                     |   | $                                         | 14,459 |   |                                      | $      | 17,997 |                                         |   | $      | 24,945                                       |   |   | $ | 37,161 |   |
| Average      shares outstanding                                                     |   |                                      | 27,948 |   |                                      |   | 28,160 |                                         |   |   | 28,070                                       |   |   |   | 28,194 |   |
| Basic      net income per share                                                     |   | $                                         | 0.52   |   |                                      | $      | 0.64   |                                         |   | $      | 0.89                                         |   |   | $ | 1.32 |   |
|                                                                                |   |                                      |   |   |                                      |   |   |                                         |   |   |                                         |   |   |   |   |   |
| Diluted:                                                                            |   |                                      |   |   |                                      |   |   |                                         |   |   |                                         |   |   |   |   |   |
| Net      income                                                                     |   | $                                         | 14,459 |   |                                      | $      | 17,997 |                                         |   | $      | 24,945                                       |   |   | $ | 37,161 |   |
| Add      interest expense on convertible note, net of management fee and      taxes |   |                                      | 343    |   |                                      |   | 429    |                                         |   |   | 709                                          |   |   |   | 857 |   |
| Total                                                                               |   | $                                         | 14,802 |   |                                      | $      | 18,426 |                                         |   | $      | 25,654                                       |   |   | $ | 38,018 |   |
|                                                                                |   |                                      |   |   |                                      |   |   |                                         |   |   |                                         |   |   |   |   |   |
| Average      shares outstanding                                                     |   |                                      | 27,948 |   |                                      |   | 28,160 |                                         |   |   | 28,070                                       |   |   |   | 28,194 |   |
| Dilutive      stock options                                                         |   |                                      | 40     |   |                                      |   | 44     |                                         |   |   | 46                                           |   |   |   | 35 |   |
| Assumed      conversion of convertible note                                         |   |                                      | 755    |   |                                      |   | 943    |                                         |   |   | 780                                          |   |   |   | 943 |   |
| Total                                                                               |   |                                      | 28,743 |   |                                      |   | 29,147 |                                         |   |   | 28,896                                       |   |   |   | 29,172 |   |
| Diluted      net income per share                                                   |   | $                                         | 0.51   |   |                                      | $      | 0.63   |                                         |   | $      | 0.89                                         |   |   | $ | 1.30 |   |

|           |   |   | 2007   |   |   | 2008   |   |        | 2009   |   |   | 2010        |        |   | 2011   |        |   | 2012   |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|-------------|-------------|--------|--------|-------------|--------|--------|--------|
|           | Q1     |   |   | $      | 21     |   |   | $           | 1,198  |   |   | $           | 1,199  |   |   | $           | 1,188  |   |   | $ | 694  |   |   | $ | 687  |   |
|           | Q2     |   |   |   | 24     |   |   |        | 1,204  |   |   |        | 1,195  |   |   |        | 1,185  |   |   |   | 689  |   |   |   | 686  |   |
|           | Q3     |   |   |   | 24     |   |   |        | 1,207  |   |   |        | 1,194  |   |   |        | 1,185  |   |   |   | 687  |   |   |   | 685  |   |
|           | Q4     |   |   |   | 414    |   |   |        | 1,201  |   |   |        | 1,192  |   |   |        | 1,021  |   |   |   | 687  |   |   |   | 457  |   |
| Full      Year |   |   | $      | 483    |   |   | $      | 4,810  |   |   | $      | 4,780  |        |   | $      | 4,579  |   |   | $      | 2,757  |   |   | $ | 2,515  |   |

----

----

| -   | Our      open-end equity fund AUM were $9.5 billion on June 30, 2008, unchanged      from March 31, 2008 and June 30,2007. |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| -   | Our      closed-end equity funds had AUM of $5.7 billion on June 30, 2008, down      1.0% from $5.8 billion on March 31, 2008 and 11.0% from the $6.4 billion      on June 30, 2007. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our      institutional and private wealth management business ended the quarter      with $11.6 billion in separately managed accounts, level with March 31,      2008 and 14.0% lower than the $13.5 billion on June 30, 2007. The      reclassification of the Gabelli Enterprise Mergers and Acquisitions Fund      from institutional sub-advisory to mutual fund advisory in March 2008      partially accounted for the decline in institutional and private wealth      management AUM. On a pro-forma basis, AUM was 8.4% lower than the $12.7      million AUM on June 30, 2007. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our      Investment Partnerships AUM were $354 million on June 30, 2008 versus $396      million on March 31, 2008 and $486 million on June 30,    2007. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Fixed      income AUM were up 67.5% to $1.2 billion on June 30, 2008, versus the $0.7      billion on June 30, 2007. For the quarter, the assets were down 18.4% as      of March 31, 2008. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | We      receive incentive and fulcrum fees for certain institutional client assets      as well as for preferred issues for our closed-end funds, fulcrum fees for      the Gabelli Global Deal Fund (NYSE: GDL) common shares, and incentive fees      for investment partnership assets. As of June 30, 2008, incentive and      fulcrum fee assets were $3.2 billion, slightly below $3.3 billion on March      31, 2008 and 12.1% below $3.6 billion on June 30,  2007. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Table I:                                                       |               |   |               |   |                     |                           |   |   |   |   |
|----------------------------------------------------------------------|--------------------|--------|--------------------|--------|--------------------------|--------------------------------|--------|--------|--------|--------|
| Mutual      Funds:                                                   | June      30, 2008 |   | June      30, 2007 |   | %      Inc. (Dec.)  | Adjusted      % Inc. (Dec) (a) |
| Open-end                                                             | $                  | 9,486  |               | $      | 9,529                    |                           | (0.5   | )      | (4.0   | )      |
| Closed-end                                                           |               | 5,704  |               |   | 6,412                    |                           | (11.0  | )      | (11.0  | )      |
| Fixed      Income                                                    |               | 1,164  |               |   | 684                      |                           | 70.2   |   | 70.2   |   |
| Total      Mutual Funds                                              |               | 16,354 |               |   | 16,625                   |                           | (1.6   | )      | (3.6   | )      |
| Institutional      & PWM:                                        |               |   |               |   |                     |                           |   |   |   |   |
| Equities:      direct                                                |               | 9,564  |               |   | 11,116                   |                           | (14.0  | )      | (14.0  | )      |
| “      "  sub-advisory |               | 2,043  |               |   | 2,383                    |                           | (14.3  | )      | 0.0    |   |
| Fixed      Income                                                    |               | 17     |               |   | 21                       |                           | (19.0  | )      | (19.0  | )      |
| Total      Institutional & PWM                                   |               | 11,624 |               |   | 13,520                   |                           | (14.0  | )      | (11.5  | )      |
| Investment      Partnerships                                         |               | 354    |               |   | 486                      |                           | (27.2  | )      | (27.2  | )      |
| Total      Assets Under Management                                   | $                  | 28,332 |               | $      | 30,631                   |                           | (7.5   | )      | (7.5   | )      |
|                                                                 |               |   |               |   |                     |                           |   |   |   |   |
| Equities                                                             | $                  | 27,151 |               | $      | 29,926                   |                           | (9.3   | )      | (9.3   | )      |
| Fixed      Income                                                    |               | 1,181  |               |   | 705                      |                           | 67.5   |   | 67.5   |   |
| Total      Assets Under Management                                   | $                  | 28,332 |               | $      | 30,631                   |                           | (7.5   | )      | (7.5   | )      |

|  TableII:                                                      |   | Assets      Under Management By Quarter (millions) |   |
|---------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | %      Increase/(decrease) |   |
| Mutual      Funds                                                   |   |                                               | 6/08   |   |   |   | 3/08 |   |   |   | 12/07 |   |   |   | 9/07 |   |   |   | 6/07 |   |   |   | 12/07      (a) |   |   | 3/08  |   |   |   |   |   |
| Open-end                                                            |   | $                                                  | 9,486  |   |   | $ | 9,459 |   |   | $ | 9,774 |   |   | $ | 9,866 |   |   | $ | 9,529 |   |   |   | (6.4 | ) |   | 0.3 |   |   |   |   |   |
| Closed-end                                                          |   |                                               | 5,704  |   |   |   |        5,762 |   |   |   | 6,341 |   |   |   |        6,443 |   |   |   | 6,412 |   |   |   | (10.0 | ) |   | (1.0 | ) |   |   |   |   |
| Fixed      income                                                   |   |                                               | 1,164  |   |   |   |        1,445 |   |   |   | 1,122 |   |   |   |        1,048 |   |   |   | 684 |   |   |   | 3.7 |   |   | (19.4 | ) |   |   |   |   |
| Total      Mutual Funds                                             |   |                                               | 16,354 |   |   |   |  16,666 |   |   |   | 17,237 |   |   |   |  17,357 |   |   |   | 16,625 |   |   |   | (7.1 | ) |   | (1.9 | ) |   |   |   |   |
| Institutional      & PWM:                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equities:      direct                                               |   |                                               | 9,564  |   |   |   |  9,746 |   |   |   | 10,708 |   |   |   |  11,266 |   |   |   | 11,116 |   |   |   | (10.7 | ) |   | (1.9 | ) |   |   |   |   |
| “        sub-advisory |   |                                               | 2,043  |   |   |   |  1,887 |   |   |   | 2,584 |   |   |   |  2,494 |   |   |   | 2,383 |   |   |   | (7.7 | ) |   | 8.3 |   |   |   |   |   |
| Fixed      Income                                                   |   |                                               | 17     |   |   |   |        2 |   |   |   | 24 |   |   |   |        27 |   |   |   | 21 |   |   |   | (29.2 | ) |   | 750.0 |   |   |   |   |   |
| Total      Institutional & PWM                                  |   |                                               | 11,624 |   |   |   | 11,635 |   |   |   | 13,316 |   |   |   | 13,787 |   |   |   | 13,520 |   |   |   | (12.7 | ) |   | (0.1 | ) |   |   |   |   |
| Investment      Partnerships                                        |   |                                               | 354    |   |   |   | 396 |   |   |   | 460 |   |   |   | 491 |   |   |   | 486 |   |   |   | (23.0) |   |   | (10.6 | ) |   |   |   |   |
| Total      Assets Under Management                                  |   | $                                                  | 28,332 |   |   | $ | 28,697 |   |   | $ | 31,013 |   |   | $ | 31,635 |   |   | $ | 30,631 |   |   |   | (8.6 | ) |   | (1.3 | ) |   |   |   |   |

| Table      III:                                                      |                      |                |                                     |               |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
|----------------------------------------------------------------------|---------------------------|---------------------|------------------------------------------|--------------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                                 |  March      31, 2008 | Net      Cash Flows | MarketAppreciation      / (Depreciation) | June      30, 2008 |   |   |
| Mutual      Funds:                                                   |                      |                |                                     |               |   |   |   |   |   |   |   |    |
| Equities                                                             |                      | $                   |        15,221                       |               |   | $      | (51    | )      |   |   | 20     |    |   | $      | 15,190 |   |
| Fixed      Income                                                    |                      |                |        1,445                        |               |   |   | (282   | )      |   |   | 1      |    |   |   | 1,164  |   |
| Total      Mutual Funds                                              |                      |                |        16,666                       |               |   |   | (333   | )      |   |   | 21     |    |   |   | 16,354 |   |
| Institutional      & PWM                                         |                      |                |                                     |               |   |   |   |   |   |   |   |    |   |   |   |   |
| Equities:      direct                                                |                      |                |        9,746                        |               |   |   | (39    | )      |   |   | (143   | )  |   |   | 9,564  |   |
| “     "   sub-advisory |                      |                |        1,887                        |               |   |   | 163    |   |   |   | (7     | )  |   |   | 2,043  |   |
| Fixed      Income                                                    |                      |                |        2                            |               |   |   | 16     |   |   |   | (1     | )  |   |   | 17     |   |
| Total      Institutional & PWM                                   |                      |                |        11,635                       |               |   |   | 140    |   |   |   | (151   | )  |   |   | 11,624 |   |
|                                                                 |                      |                |                                     |               |   |   |   |   |   |   |   |    |   |   |   |   |
| Investment      Partnerships                                         |                      |                |        396                          |               |   |   | (46    | )      |   |   | 4      |    |   |   | 354    |   |
| Total      Assets Under Management                                   |                      | $                   |        28,697                       |               |   | $      | (239   | )      |   |   | (126   | )  |   | $      | 28,332 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2008   |   |   | 2007   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |
|   Investment      advisory and incentive fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 55,131 |   |   | $ | 57,654 |   |
|   Commission      revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 3,664  |   |   |   | 4,036 |   |
|   Distribution      fees and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,629  |   |   |   | 6,587 |   |
|      Total      revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 65,424 |   |   |   | 68,277 |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|   Compensation      and related costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 27,763 |   |   |   | 29,905 |   |
|   Management      fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 2,586  |   |   |   | 3,449 |   |
|   Distribution      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,794  |   |   |   | 10,161 |   |
|   Other      operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 7,074  |   |   |   | 7,594 |   |
|      Total      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 44,217 |   |   |   | 51,109 |   |
| Operating      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 21,207 |   |   |   | 17,168 |   |
| Other      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Net      gain from investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 10     |   |   |   | 11,193 |   |
| Interest      and dividend income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 4,196  |   |   |   | 6,166 |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (2,199 | )      |   |   | (3,329 | ) |
| Total      other income, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 2,007  |   |   |   | 14,030 |   |
| Income      before taxes and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 23,214 |   |   |   | 31,198 |   |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 8,719  |   |   |   | 12,856 |   |
| Minority      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 36     |   |   |   | 345 |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 14,459 |   |   | $ | 17,997 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net      income per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 0.52   |   |   | $ | 0.64 |   |
|    Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 0.51   |   |   | $ | 0.63 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Reconciliation      of Net income to Adjusted EBITDA:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 14,459 |   |   | $ | 17,997 |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 2,199  |   |   |   | 3,329 |   |
| Income      tax provision and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 8,755  |   |   |   | 13,201 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 254    |   |   |   | 216 |   |
| Adjusted      EBITDA (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 25,667 |   |   | $ | 34,743 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| (a)      Adjusted      EBITDA is defined as earnings before interest, taxes, depreciation and      amortization, and minority interest.  Adjusted EBITDA is a      non-GAAP measure and should not be considered as an alternative to any      measure of performance as promulgated under accounting principles      generally accepted in the United States nor should it be considered as an      indicator of our overall financial performance.  We use Adjusted      EBITDA as a supplemental measure of performance as we believe it gives      investors a more complete understanding of our operating results before      the impact of financing activities as a tool for determining the private      market value of an enterprise. |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2008   |    |    | 2007   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |    |   |
|   Investment      advisory and incentive fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 111,972 |    |   | $ | 114,214 |   |
|   Commission      revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,920   |    |   |   | 8,056 |   |
|   Distribution      fees and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 13,080  |    |   |   | 12,613 |   |
|      Total      revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 131,972 |    |   |   | 134,883 |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |    |   |   |   |   |
|   Compensation      and related costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 56,610  |    |   |   | 58,279 |   |
|   Management      fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 4,567   |    |   |   | 6,850 |   |
|   Distribution      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 13,203  |    |   |   | 16,047 |   |
|   Other      operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 13,128  |    |   |   | 16,028 |   |
|      Total      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 87,508  |    |   |   | 97,204 |   |
| Operating      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 44,464  |    |   |   | 37,679 |   |
| Other      income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |    |    |   |   |   |   |
| Net      gain (loss) from investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (8,379  | )  |   |   | 16,763 |   |
| Interest      and dividend income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 8,970   |    |   |   |  14,168 |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (4,266  | )       |   |   | (6,709 | ) |
| Total      other income (expense), net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (3,675  | )  |   |   | 24,222 |   |
| Income      before taxes and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 40,789  |    |   |   | 61,901 |   |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 16,045  |    |   |   | 24,063 |   |
| Minority      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (201    | )  |   |   | 677 |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 24,945  |    |   | $ |  37,161 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |    |   |   |   |   |
| Net      income per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |    |    |   |   |   |   |
|    Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 0.89    |    |   | $ | 1.32 |   |
|    Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 0.89    |    |   | $ | 1.30 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |    |   |   |   |   |
| Reconciliation      of Net income to Adjusted EBITDA:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |    |    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |    |   |   |   |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 24,945  |    |   | $ | 37,161 |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 4,266   |    |   |   | 6,709 |   |
| Income      tax provision and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 15,844  |    |   |   | 24,740 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 483     |    |   |   | 522 |   |
| Adjusted      EBITDA (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 45,538  |    |   | $ | 69,132 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |    |   |   |   |   |
| (a)      Adjusted      EBITDA is defined as earnings before interest, taxes, depreciation and      amortization, and minority interest.  Adjusted EBITDA is a      non-GAAP measure and should not be considered as an alternative to any      measure of performance as promulgated under accounting principles      generally accepted in the United States nor should it be considered as an      indicator of our overall financial performance.  We use Adjusted      EBITDA as a supplemental measure of performance as we believe it gives      investors a more complete understanding of our operating results before      the impact of financing activities as a tool for determining the private      market value of an enterprise. |

----

|                                                                         |   | Six      Months Ended June 30, |          |
|------------------------------------------------------------------------------|--------|--------------------------------|---------------|
|                                                                         |   | 2008                           |          |   | 2007 |   |
| Cash      flows (used in) provided by:                                       |   | (in      thousands)            |          |
|    Operating      activities                                  |   | $                              | 123,318       |   |   | $ | 78,186 |   |
|    Investing      activities                                  |   |                           | (159          | ) |   |   | (22,962 | ) |
|    Financing      activities                                  |   |                           |  (25,133 | ) |   |   | (88,627 | ) |
|    (Decrease) Increase                              |   |                           | 98,026        |   |   |   |  (33,403 | ) |
|    Effect      of exchange rates on cash and cash equivalents |   |                           |  (1      | )  |   |   | 16 |   |
|    Cash      and cash equivalents at beginning of period      |   |                           |  168,319 |   |   |   | 138,113 |   |
|    Cash      and cash equivalents at end of period            |   | $                              | 266,344       |   |   | $ | 104,726 |   |
|                                                                         |   |                           |          |   |   |   |   |   |

----

| -   | Level      1 inputs utilize quoted prices (unadjusted) in active markets for      identical assets or liabilities.                                                                                                                                                                                                                                                                                                                                             |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Level      2 inputs utilize inputs other than quoted prices included in Level 1 that      are observable for the asset or liability, either directly or indirectly.      Level 2 inputs include quoted prices for similar assets and liabilities in      active markets and inputs other than quoted prices that are observable for      the asset or liability, such as interest rates and yield curves that are      observable at commonly-quotedintervals. |

| -   | Level      3 inputs are unobservable inputs for the asset or liability, and include      situations where there is little, if any, market activity for the asset or      liability.  |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

SFAS No. 142 
, "Goodwill and Other IntangibleAssets". Statement142-3 is effectivefor financial statements issued for fiscal years beginning after December15, 2008, and interim periods within those fiscal years. Early adoption isprohibited. The Company plans to adopt this statement on January 1, 2009.Statement 142-3 isapplicable to the Company however, the effect of its adoption is not expected tobe material.

|                                                   |   | Fair      Value |        |   | Fair      Value assuming 10% decrease in equity prices |    |        | Fair      Value assuming 10% increase in equity prices |   |
|--------------------------------------------------------|--------|-----------------|-------------|--------|--------------------------------------------------------|---------|-------------|--------------------------------------------------------|--------|
| At      June 30, 2008:                                 |   |            |        |   |                                                   |    |             |                                                   |   |   |   |   |
| Equity price      sensitive investments, at fair value |   |  $         | 299.6  |   |                                                   | $  | 269.6  |                                                   |   | $  | 329.6 |   |

----

|  Item 2. |  Changes in Securities, Use of Proceeds and      Issuer Purchases of Equity Securities                                                                                |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                       |
|          |  The      following table provides information with respect to the repurchase of      Class A Common Stock of GAMCO during the three months ended June 30,      2008: |

|  Period                                                                                                                                                                                                                             |   |  (a)      Total Number of Shares Repurchased |    |  (b)      Average Price Paid Per Share, net of Commissions |  (c)      Total Number of Shares Repurchased as Part of Publicly Announced Plans or      Programs | (d)      Maximum Number of Shares That May Yet Be Purchased Under the Plans or      Programs |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
| 4/01/08      – 4/30/08                                                                                                                                                                                                             |   |                                              | 52,936  |                                                            | 45.83                                                                                                  | 52,936                                                                                       | 599,836 |
| 5/01/08      – 5/31/08                                                                                                                                                                                                             |   |                                              | 117,300 |                                                            | 52.06                                                                                                  | 117,300                                                                                      | 982,536 |
| 6/01/08      – 6/30/08                                                                                                                                                                                                             |   |                                              | 73,800  |                                                            | 52.54                                                                                                  | 73,800                                                                                       | 908,736 |
| Totals                                                                                                                                                                                                                                   |   |                                              | 244,036 |                                                            |                                                                                                   | 244,036                                                                                      |   |
|                                                                                                                                                                                                                                     |   |                                              |    |                                                            |                                                                                                   |                                                                                         |   |
|  In May 2008, the      board of directors approved an increase of 500,000 shares of GBL available      to be repurchased under our stock repurchase program. Our stock repurchase      programs are not subject to expirationdates. |

|  Item      4.  |  Submission of Matters to a Vote of Security      Holders                                                                                                                                                                                                                                                                            |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                                                                                                                      |
|                     |  GAMCO      held its annual meeting of shareholders in Greenwich, Connecticut on May      7, 2008.  At that meeting, the shareholders considered and acted      upon the following matters:                                                                                                                                |
|                     |                                                                                                                                                                                                                                                                                                                                      |
|                     |  THE      ELECTION OF DIRECTORS.  The stockholders elected the following      individuals to serve as directors until the 2009 annual meeting of      stockholders and until their respective successors are duly elected and      qualified. All      of the nominees were elected with the following votes    cast: |

| Nominees                       |   | For    |        |   | Withheld |   |
|--------------------------------|--------|--------|-------------|--------|----------|--------|
| Mario      J. Gabelli          |   |   | 208,837,319 |   |     |   | 1,584,728  |   |
| Raymond      C. Avansino  |   |   | 210,033,933 |   |     |   | 388,114  |   |
| Edwin      L. Artzt            |   |   | 210,271,454 |   |     |   | 150,593 |   |
| Richard      L. Bready         |   |   | 210,223,424 |   |     |   | 198,623 |   |
| John      D. Gabelli           |   |   | 208,844,403 |   |     |   | 1,577,644 |   |
| Eugene      R. McGrath         |   |   | 210,377,297 |   |     |   | 44,750 |   |
| Robert      S. Prather, Jr.    |   |   | 210,210,872 |   |     |   | 211,175 |   |

|   |   |        | For    |   | Against      |   |   | Abstain |      |
|--------|--------|-------------|--------|--------|--------------|--------|--------|---------|-----------|
|   |   | 210,378,089 |   |   | 43,251  |   |   |    | 707  |   |

|  Item      6.  |   (a) Exhibits |
|--------------------------|-------------------------------|
|                     |                          |

|   | 31.1 | -- | Certification      of CEO pursuant to Rule 13a-14(a). |
|--------|------|----|-------------------------------------------------------|

|   | 31.2 | -- | Certification      of CFO pursuant to Rule 13a-14(a). |
|--------|------|----|-------------------------------------------------------|

|   | 32.1 | -- | Certification      of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section      906 of the Sarbanes-Oxley Act of2002. |
|--------|------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | -- | Certification      of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section      906 of the Sarbanes- Oxley Act of2002. |
|--------|------|----|------------------------------------------------------------------------------------------------------------------------------------------|

| By:/s/ Kieran      Caterina            | By:/s/   Diane      M. LaPointe |
|---------------------------------------------|------------------------------------------------|
| Name:  Kieran      Caterina       | Name:  Diane      M. LaPointe        |
| Title:      Co-Principal Accounting Officer | Title:      Co-Principal Accounting Officer    |
|                                        |                                           |
| Date:      August 7, 2008                   | Date:      August 7, 2008                      |

----