PATENT
SECURITY AGREEMENT




This
Patent Security Agreement (this “Agreement”), is dated
as of May 22, 2009, by LAS
VEGAS GAMING, INC., a Nevada corporation (the “Grantor”), in favor
of IGT, a Nevada
corporation (the “Lender”).




W I T N E S S E T
H




WHEREAS,
the Grantor is party to a certain IGT-LVGI Binding Term Sheet dated on or about
February 13, 2009 (as it may be amended, restated, supplemented or
otherwise modified from time to time, the “Advance Term Sheet”)
between the Grantor and the Lender, pursuant to which the Lender advanced
certain sums to Grantor, and the Grantor granted the Lender a security interest
in all of the Grantor’s present and future assets.  Under the Advance
Term Sheet, the Grantor is required to execute and deliver this
Agreement;




NOW,
THEREFORE, in consideration of the premises and in connection with the Advance
Term Sheet, the Grantor hereby agrees with the Lender as follows:




SECTION
1.  Grant of Security Interest
in Patent Collateral.  The Grantor hereby pledges and grants to
the Lender for the benefit of the Lender and any affiliate of the Lender, a
continuing lien on and continuing security interest in and to all of the
Grantor’s right, title and interest in, to and under all the following
collateral of such Grantor:




(a)  patents
of Grantor listed on Schedule I
attached hereto;




(b)  all
goodwill associated with such patents; and




(c)  all
proceeds of any and all of the foregoing.




SECTION
2.  Security
Agreement.  The security interest granted pursuant to this
Agreement is granted in conjunction with the security interest granted to the
Lender pursuant to the Advance Term Sheet and that certain Security Agreement
dated the date of this Agreement between the Grantor and the Lender, the terms
and provisions of which are incorporated by reference herein as if fully set
forth herein.




SECTION
3.  Termination.  Upon
the release of the Lender’s security interest in any patents, the Lender shall
execute, acknowledge, and deliver to the Grantor an instrument in writing in
recordable form releasing the collateral pledge, grant, assignment, lien and
security interest in such patents under this Agreement.




SECTION
4.  Counterparts.  This
Agreement may be executed in any number of counterparts, all of which shall
constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more
counterparts.  Delivery of an executed counterpart by facsimile or
other electronic means shall be effective as delivery of a manually executed
counterpart of this Agreement.






[signature page
follows]


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IN
WITNESS WHEREOF, Grantor has caused this Agreement to be executed and delivered
by its duly authorized officer as of the date first set forth
above.






LAS
VEGAS GAMING, INC.




By:  
/s/  Bruce
Shepard


Name:   
Bruce Shepard


Title:     
Chief Financial Officer




ACCEPTED
AND AGREED:






IGT




By: /s/  Ken
Creighton


Name:  
Ken Creighton


Title:    
Assistant Secretary and






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SCHEDULE I TO PATENT
SECURITY AGREEMENT




i.           Patents






1.           U.S.
Patents




PATENT
      NUMBER
            DATE OF
      PATENT
            TITLE1)
            6,059,659
            MAY 9,
      2000
            ROULETTE TABLE HAVING
      PROGRESSIVE JACKPOTS2)
            7,335,106
      B2
            FEBRUARY 26,
      2008
            CLOSED-LOOP SYSTEM FOR
      DISPLAYING PROMOTIONAL EVENTS AND GRANTING AWARDS FOR ELECTRONIC VIDEO
      GAMES3)
            7,258,608
      B2
            AUGUST 21,
      2007
            KENO GAME WITH EXTRA
      CHANCES4)
            6,722,978
      B2
            APRIL 20,
      2004
            METHOD OF PLAYING A LINKED
      NUMERICAL GAME OF CHANCE WITH A BONUS AND PARLAY WAGERING
      OPTION




2.           U.S. Patent
Applications




PATENT APPLICATION
      NUMBER
            TITLE1)
            11/469,108
            METHODS AND APPARATUS FOR
      INTERACTING WITH PLAYERS OF VIDEO MACHINES2)
            11/468,946
            CLOSED-LOOP SYSTEM FOR
      PROVIDING ADDITIONAL EVENT PARTICIPATION TO ELECTRONIC VIDEO GAME
      CUSTOMERS3)
            11/686,755
            AUTOMATIC FUNDING OF
      PARAGAMES ON ELECTRONIC GAMING PLATFORM4)
            11/968,633
            ENHANCED VIDEO GAMING
      MACHINE5)
            11/897,533
            Method and system for
      paragame activity at electronic gaming machine6)
            11/897,532
            Method and apparatus for
      providing secondary gaming machine functionality7)
            11/847,062
            SYSTEM TO DECODE VIDEO SIGNAL
      FROM ELECTRONIC GAMING DEVICE AND TO DETERMINE PLAY
      INFORMATION






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3.           International
Patents/Applications




COUNTRY PATENT/APPLICATION
      NUMBER
            TITLE1)
            WO
      1997/046293
            ROULETTE TABLE HAVING
      PROGRESSIVE JACKPOTS2)
            WO
      2005/043285
            CLOSED-LOOP SYSTEM FOR
      DISPLAYING PROMOTIONAL EVENTS AND GRANTING AWARDS FOR ELECTRONIC VIDEO
      GAMES3)
            WO
      2007/035388
            METHODS AND APPARATUS FOR
      INTERACTING WITH PLAYERS OF VIDEO MACHINES4)
            WO
      2008/027062
            CLOSED-LOOP SYSTEM FOR
      PROVIDING ADDITIONAL EVENT PARTICIPATION TO ELECTRONIC VIDEO GAME
      CUSTOMERS5)
            WO
      2008/027443
            METHOD AND SYSTEM FOR
      PARAGAME ACTIVITY AT ELECTRONIC GAMING MACHINE6)
            WO
      2008/027444
            METHOD AND APPARATUS FOR
      PROVIDING SECONDARY GAMING MACHINE FUNCTIONALITY7)
            WO
      2009/029101
            SYSTEM TO DECODE VIDEO SIGNAL
      FROM ELECTRONIC GAMING DEVICE AND TO DETERMINE PLAY
      INFORMATION





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