----

----

| (Mark      One) |
|-----------------|
| R               | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 FOR      THE QUARTERLY PERIOD ENDED MARCH 31, 2008 |
|            |   |
|            | OR |
|            |   |
| £          | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 FOR      THE TRANSITION PERIOD FROM      _______________TO______________________ |

| Delaware                             | 36-2814522                                |
|--------------------------------------|-------------------------------------------|
| (State or other      Jurisdiction of | (I.R.S. Employer      Identification No.) |
| incorporation or      organization)  |                                      |

----

----

WMS INDUSTRIES INC.

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   Page |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
| Part      I.  | Financial      Information                                                                                                                                                                                 |             |
| Item      1.  | Financial      Statements                                                                                                                                                                                  | 3                |
|          | Condensed Consolidated Statements of Income (unaudited) for the      Three and Nine Months Ended March 31, 2008 and    2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3                |
|          | Condensed Consolidated Balance Sheets as of March 31, 2008      (unaudited) and June 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 4                |
|          | Condensed Consolidated Statements of Cash Flows (unaudited) for      the Nine Months Ended March 31, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 5                |
|          | Notes to Condensed Consolidated Financial Statements      (unaudited)                                                                                                                                      | 6                |
| Item      2.  | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 13               |
| Item      3.  | Quantitative and Qualitative Disclosures About Market      Risk                                                                                                                                            | 23               |
| Item      4.  | Controls and      Procedures                                                                                                                                                                               | 23               |
| Part      II. | Other      Information                                                                                                                                                                                     |             |
| Item      1.  | Legal      Proceedings                                                                                                                                                                                     | 24               |
| Item      1A. | Risk      Factors                                                                                                                                                                                          | 24               |
| Item      2.  | Unregistered Sales of Equity Securities and Use of      Proceeds                                                                                                                                           | 24               |
| Item      3.  | Defaults Upon Senior      Securities                                                                                                                                                                       | 24               |
| Item      4.  | Submission of Matters to a Vote of Security      Holders                                                                                                                                                   | 25               |
| Item      5.  | Other      Information                                                                                                                                                                                     | 25               |
| Item      6.  | Exhibits                                                                                                                                                                                                   | 25               |
| Signatures    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 26               |

Table of Contents

PART I.  FINANCIAL 

WMS INDUSTRIES INC.

|                                                                                                                                                                                                      |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                                                      |   | March      31,          |   |   | March      31,         |   |
|                                                                                                                                                                                                      |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
| REVENUES:                                                                                                                                                                                                 |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Product sales                                                                                                                                                                                             |   | $                       | 113.6  |   |                   | $      | 93.9 |   |   | $ | 299.2 |   |   | $ | 256.3 |   |
| Gaming      operations                                                                                                                                                                                    |   |                    | 59.2   |   |                   |   | 42.7 |   |   |   | 165.3 |   |   |   | 125.5 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|          Total      revenues                                                                                                                                 |   |                    | 172.8  |   |                   |   | 136.6 |   |   |   | 464.5 |   |   |   | 381.8 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS      AND EXPENSES:                                                                                                                                                                                  |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of product sales(1)                                                                                                                                                                             |   |                    | 59.1   |   |                   |   | 50.9 |   |   |   | 155.8 |   |   |   | 142.0 |   |
| Cost      of gaming operations(1)                                                                                                                                                                         |   |                    | 12.3   |   |                   |   | 8.0 |   |   |   | 34.2 |   |   |   | 26.0 |   |
| Research      and development                                                                                                                                                                             |   |                    | 19.5   |   |                   |   | 14.6 |   |   |   | 53.8 |   |   |   | 41.2 |   |
| Selling      and administrative                                                                                                                                                                           |   |                    | 34.0   |   |                   |   | 28.0 |   |   |   | 95.9 |   |   |   | 78.2 |   |
| Depreciation(1)                                                                                                                                                                                           |   |                    | 18.3   |   |                   |   | 15.3 |   |   |   | 54.3 |   |   |   | 46.5 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|          Total      costs and expenses                                                                                                                       |   |                    | 143.2  |   |                   |   | 116.8 |   |   |   | 394.0 |   |   |   | 333.9 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      INCOME                                                                                                                                                                                     |   |                    | 29.6   |   |                   |   | 19.8 |   |   |   | 70.5 |   |   |   | 47.9 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                                                                                                     |   |                    | (1.1   | )      |                   |   | (1.0 | ) |   |   | (3.1 | ) |   |   | (3.8 | ) |
| Interest      and other income, net                                                                                                                                                                       |   |                    | 1.3    |   |                   |   | 0.8 |   |   |   | 3.8 |   |   |   | 2.2 |   |
| Income      before income taxes                                                                                                                                                                           |   |                    | 29.8   |   |                   |   | 19.6 |   |   |   | 71.2 |   |   |   | 46.3 |   |
| Provision      for income taxes                                                                                                                                                                           |   |                    | 11.0   |   |                   |   | 6.7 |   |   |   | 25.3 |   |   |   | 14.1 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                                                                                                                                                                           |   | $                       | 18.8   |   |                   | $      | 12.9 |   |   | $ | 45.9 |   |   | $ | 32.2 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share:                                                                                                                                                                                  |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                     |   | $                       | 0.37   |   |                   | $      | 0.26 |   |   | $ | 0.92 |   |   | $ | 0.67 |   |
| Diluted                                                                                                                                                                                                   |   | $                       | 0.32   |   |                   | $      | 0.23 |   |   | $ | 0.78 |   |   | $ | 0.58 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      common shares:                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      common stock outstanding                                                                                                                                                                       |   |                    | 50.5   |   |                   |   | 49.1 |   |   |   | 50.1 |   |   |   | 48.1 |   |
| Diluted      common stock and common stock equivalents                                                                                                                                                    |   |                    | 60.9   |   |                   |   | 59.6 |   |   |   | 60.6 |   |   |   | 58.9 |   |
|                                                                                                                                                                                                      |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Cost      of product sales and cost of gaming operations exclude the following      amounts of depreciation,     which      are included in the depreciation line item: |   |
| Cost      of product sales                                                                                                                                                                                |   | $                       | 0.9    |   |                   | $      | 0.6 |   |   | $ | 2.6 |   |   | $ | 1.8 |   |
| Cost      of gaming operations                                                                                                                                                                            |   | $                       | 15.1   |   |                   | $      | 12.9 |   |   | $ | 45.2 |   |   | $ | 38.8 |   |

Table of Contents

WMS INDUSTRIES INC.

|                                                                                                                         |   | March      31, |    |   | June      30, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                                                                                                         |   | 2008           |    |   | 2007          |   |
| ASSETS                                                                                                                       |   | (unaudited)    |    |   |          |   |
| CURRENT      ASSETS:                                                                                                         |   |           |    |   |          |   |
|   Cash      and cash equivalents                                                                                   |   | $              | 93.9    |   |          | $      | 37.2 |   |
|   Restricted      cash                                                                                             |   |           | 18.5    |   |          |   | 16.0 |   |
| Total      cash, cash equivalents, and restricted cash                                                                       |   |           | 112.4   |   |          |   | 53.2 |   |
|    Accounts      receivable, net of allowances of $2.1 and $2.5,    respectively                              |   |           | 118.3   |   |          |   | 114.5 |   |
|   Notes      receivable, current portion                                                                           |   |           | 64.3    |   |          |   | 59.4 |   |
|   Inventories                                                                                                      |   |           | 65.1    |   |          |   | 79.3 |   |
|   Deferred      income tax assets                                                                                  |   |           | 9.7     |   |          |   | 9.4 |   |
|   Other      current assets                                                                                        |   |           | 32.8    |   |          |   | 26.4 |   |
|        Total current      assets                                                          |   |           | 402.6   |   |          |   | 342.2 |   |
|                                                                                                                         |   |           |    |   |          |   |   |   |
| NON-CURRENT      ASSETS:                                                                                                     |   |           |    |   |          |   |   |   |
|          Gaming operations equipment, net of accumulated depreciation of $159.4 and      $129.3, respectively |   |           | 78.1    |   |          |   | 90.0 |   |
|          Property, plant and equipment, net of accumulated depreciation of $69.6      and $57.9, respectively |   |           | 113.2   |   |          |   | 91.9 |   |
| Intangible      assets                                                                                                       |   |           | 107.8   |   |          |   | 97.0 |   |
| Deferred      income tax assets                                                                                              |   |           | 25.6    |   |          |   | 19.9 |   |
| Other      assets                                                                                                            |   |           | 16.8    |   |          |   | 14.7 |   |
| Total      non-current assets                                                                                                |   |           | 341.5   |   |          |   | 313.5 |   |
| TOTAL      ASSETS                                                                                                            |   | $              | 744.1   |   |          | $      | 655.7 |   |
|  LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                        |   |           |    |   |          |   |   |   |
| CURRENT LIABILITIES:                                                                                                    |   |           |    |   |          |   |   |   |
|   Accounts      payable                                                                                            |   | $              | 46.6    |   |          | $      | 38.8 |   |
|   Accrued      compensation and related benefits                                                                   |   |           | 15.8    |   |          |   | 17.5 |   |
|   Other      accrued liabilities                                                                                   |   |           | 34.2    |   |          |   | 30.4 |   |
|        Total current      liabilities                                                     |   |           | 96.6    |   |          |   | 86.7 |   |
|                                                                                                                         |   |           |    |   |          |   |   |   |
| NON-CURRENT LIABILITIES:                                                                                                |   |           |    |   |          |   |   |   |
|   Deferred      income tax liabilities.                                                                            |   |           | 12.1    |   |          |   | 9.4 |   |
|   Long-term      debt                                                                                              |   |           | 115.0   |   |          |   | 115.0 |   |
|   Other      non-current liabilities                                                                               |   |           | 13.4    |   |          |   | 11.0 |   |
|        Total non-current      liabilities                                                 |   |           | 140.5   |   |          |   | 135.4 |   |
|                                                                                                                         |   |           |    |   |          |   |   |   |
| Commitments,      contingencies and indemnifications (see Note 12)                                                           |   |           | — |   |          |   | — |   |
|  STOCKHOLDERS’      EQUITY:                                                                                       |   |           |    |   |          |   |   |   |
|   Preferred      stock (5.0 shares authorized, none issued)                                                        |   |           | — |   |          |   | — |   |
|   Common      stock (100.0 shares authorized, 50.8 and 50.0 shares issued,      respectively)                      |   |           | 25.4    |   |          |   | 25.0 |   |
|   Additional      paid-in capital                                                                                  |   |           | 296.1   |   |          |   | 269.1 |   |
|   Retained      earnings                                                                                           |   |           | 182.3   |   |          |   | 138.2 |   |
|   Accumulated      other comprehensive income                                                                      |   |           | 8.2     |   |          |   | 1.3 |   |
|   Treasury      stock (0.1 shares and zero shares, respectively)                                                   |   |           | (5.0    | )      |          |   | — |   |
|        Total stockholders’      equity                                              |   |           | 507.0   |   |          |   | 433.6 |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                        |   | $              | 744.1   |   |          | $      | 655.7 |   |

Table of Contents

WMS INDUSTRIES INC.

|                                                                                                                         |   | Nine      Months EndedMarch      31, |    |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                                                                                         |   | 2008                                 |    |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                   |   |                                 |    |   |   |   |
| Net      income                                                                                                              |   | $                                    | 45.9    |   |   | $ | 32.2 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                             |   |                                 |    |   |   |   |   |   |
|   Depreciation                                                                                                     |   |                                 | 54.3    |   |   |   | 46.5 |   |
|   Share-based      compensation                                                                                    |   |                                 | 11.5    |   |   |   | 9.1 |   |
|   Amortization      of intangibles and other assets                                                                |   |                                 | 13.7    |   |   |   | 11.9 |   |
|   Other      non-cash items                                                                                        |   |                                 | 7.0     |   |   |   | (3.1 | ) |
|   Bad      debt expense                                                                                            |   |                                 | 2.2     |   |   |   | 0.7 |   |
|   Deferred      income taxes                                                                                       |   |                                 | (3.3    | ) |   |   | (5.1 | ) |
|   Change      in operating assets and liabilities, net of  business      acquisitions                    |   |                                 | (4.9    | ) |   |   | (23.8 | ) |
| Net      cash provided by operating activities                                                                               |   |                                 | 126.4   |   |   |   | 68.4 |   |
|                                                                                                                         |   |                                 |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                   |   |                                 |    |   |   |   |   |   |
| Additions      to gaming operations equipment                                                                                |   |                                 | (37.8   | ) |   |   | (52.3 | ) |
| Purchase      of property, plant and equipment                                                                               |   |                                 | (30.8   | ) |   |   | (24.2 | ) |
| Investment      and advances in royalties, licensed technologies, patents, and trademarks,      net of business acquisitions |   |                                 | (11.1   | ) |   |   | (20.7 | ) |
| Purchase      of business, net of cash acquired                                                                              |   |                                 | (0.2    | ) |   |   | (20.9 | ) |
| Purchase      of restricted long-term investments                                                                            |   |                                 | (0.7    | ) |   |   | — |   |
| Net      cash used in investing activities                                                                                   |   |                                 | (80.6   | ) |   |   | (118.1 | ) |
|                                                                                                                         |   |                                 |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                   |   |                                 |    |   |   |   |   |   |
| Cash      received from exercise of stock options                                                                            |   |                                 | 14.3    |   |   |   | 20.5 |   |
| Tax      benefit from exercise of stock options                                                                              |   |                                 | 11.7    |   |   |   | 6.3 |   |
| Proceeds      from borrowings under revolving credit facility                                                                |   |                                 | — |   |   |   | 15.0 |   |
| Repayments      of borrowings under revolving credit facility                                                                |   |                                 | — |   |   |   | (15.0 | ) |
| Purchases      of treasury stock                                                                                             |   |                                 | (15.0   | ) |   |   | — |   |
| Net      cash provided by financing activities                                                                          |   |                                 | 11.0    |   |   |   | 26.8 |   |
|                                                                                                                         |   |                                 |    |   |   |   |   |   |
| Effect      of Exchange Rates on Cash and Cash Equivalents                                                                   |   |                                 | (0.1    | ) |   |   | 1.6 |   |
|                                                                                                                         |   |                                 |    |   |   |   |   |   |
| INCREASE      (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                        |   |                                 | 56.7    |   |   |   | (21.3 | ) |
| CASH AND CASH      EQUIVALENTS, beginning of period                                                                          |   |                                 | 37.2    |   |   |   | 39.1 |   |
| CASH AND CASH      EQUIVALENTS, end of period                                                                           |   | $                                    | 93.9    |   |   | $ | 17.8 |   |

Table of Contents

 

Table of Contents

|                                                                                                                                                                |   |                    |   |   |                   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                                                                                                                                |   | March      31,          |   |   | March      31,         |   |
|                                                                                                                                                                |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                     |   | $                       | 18.8   |   |                   | $      | 12.9 |   |   | $ | 45.9 |   |   | $ | 32.2 |   |
| After      tax interest expense and amortization of issuance cost on convertible      subordinated notes                                                            |   |                    | 0.6    |   |                   |   | 0.5 |   |   |   | 1.6 |   |   |   | 1.7 |   |
| Diluted      earnings (numerator)                                                                                                                                   |   | $                       | 19.4   |   |                   | $      | 13.4 |   |   | $ | 47.5 |   |   | $ | 33.9 |   |
|                                                                                                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      weighted average common shares outstanding                                                                                                               |   |                    | 50.5   |   |                   |   | 49.1 |   |   |   | 50.1 |   |   |   | 48.1 |   |
| Dilutive      effect of stock options                                                                                                                               |   |                    | 1.5    |   |                   |   | 1.7 |   |   |   | 1.6 |   |   |   | 2.0 |   |
| Dilutive      effect of restricted common stock and warrants                                                                                                        |   |                    | 0.2    |   |                   |   | 0.1 |   |   |   | 0.2 |   |   |   | 0.1 |   |
| Dilutive      effect of convertible subordinated notes                                                                                                              |   |                    | 8.7    |   |                   |   | 8.7 |   |   |   | 8.7 |   |   |   | 8.7 |   |
| Diluted      weighted average common stock and common stock equivalents      (denominator)                                                                          |   |                    | 60.9   |   |                   |   | 59.6 |   |   |   | 60.6 |   |   |   | 58.9 |   |
|  Basic      earnings per share of common stock                                                                                                                 |   | $                       | 0.37   |   |                   | $      | 0.26 |   |   | $ | 0.92 |   |   | $ | 0.67 |   |
| Diluted      earnings per share of common stock and common stock      equivalents                                                                                   |   | $                       | 0.32   |   |                   | $      | 0.23 |   |   | $ | 0.78 |   |   | $ | 0.58 |   |
|                                                                                                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock equivalents excluded from the calculation of  diluted      earnings per share because their impact would render them      anti-dilutive |   |                    | 0.5    |   |                   |   | 0.2 |   |   |   | 0.7 |   |   |   | 1.1 |   |

Table of Contents

|                                                        |   | March      31, |   |   | June      30, |
|-------------------------------------------------------------|--------|----------------|--------|--------|---------------|
|                                                        |   | 2008           |   |   | 2007          |
| Raw      materials and work-in-process                      |   | $              | 40.7   |   |          | $ | 52.5 |   |
| Finished      goods                                         |   |           | 24.4   |   |          |   | 26.8 |   |
| Total      inventories                                      |   | $              | 65.1   |   |          | $ | 79.3 |   |
|                                                        |   |           |   |   |          |   |   |   |
| Legacy      inventory balances included in the totals above |   | $              | 1.7    |   |          | $ | 8.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Goodwill      balance at June 30,      2007                                                                                                                                                          |   | $      | 17.4   |   |
| Additions:  SiP      acquisition (see Note      4)                                                                                                                                         |   |   | 4.5    |   |
| Foreign      currency translation      adjustment                                                                                                                                                    |   |   | 3.4    |   |
| Goodwill      balance at March 31,      2008                                                                                                                                                         |   | $      | 25.3   |   |

|                                     |   | Additions |    |
|------------------------------------------|--------|-----------|---------|
| Finite      lived intangible assets:     |   |      |    |
| Patents                                  |   | $         | 3.3     |   |
| Customer      relationships              |   |      | – |   |
| Royalties      and licensed technologies |   |      | 7.6     |   |
| Trademarks                               |   |      | 0.2     |   |
| Total                                    |   | $         | 11.1    |   |
|                                     |   |      |    |   |
| Indefinite      lived intangible assets: |   |      |    |   |
| Brand      names                         |   | $         | – |   |

|                                     |   | March      31, 2008 |   |   | June      30, 2007            |   |
|------------------------------------------|--------|---------------------|--------|--------|-------------------------------|--------|
|                                     |   | Cost                |   |   | Accumulated      Amortization |   |   | Net |   |   | Cost |   |   | Accumulated      Amortization |   |   | Net |   |
| Finite      lived intangible assets:     |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Patents                                  |   | $                   | 17.7   |   |                          | $      | (1.8 | ) |   | $ | 15.9 |   |   | $ | 14.4 |   |   | $ | (0.9 | ) |   | $ | 13.5 |   |
| Customer      relationships              |   |                | 5.2    |   |                          |   | (1.5 | ) |   |   | 3.7 |   |   |   | 4.4 |   |   |   | (0.7 | ) |   |   | 3.7 |   |
| Royalties      and licensed technologies |   |                | 108.2  |   |                          |   | (42.8 | ) |   |   | 65.4 |   |   |   | 100.6 |   |   |   | (33.9 | ) |   |   | 66.7 |   |
| Trademarks                               |   |                | 0.8    |   |                          |   | (0.2 | ) |   |   | 0.6 |   |   |   | 0.7 |   |   |   | (0.1 | ) |   |   | 0.6 |   |
| Total                                    |   | $                   | 131.9  |   |                          | $      | (46.3 | ) |   | $ | 85.6 |   |   | $ | 120.1 |   |   | $ | (35.6 | ) |   | $ | 84.5 |   |
|                                     |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indefinite      lived intangible assets: |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Brand      names                         |   | $                   | 3.6    |   |                          | $      | – |   |   | $ | 3.6 |   |   | $ | 3.0 |   |   | $ | – |   |   | $ | 3.0 |   |

Table of Contents

|                                                                                                        |   | March      31, |   |   | June      30, |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                                                                                        |   | 2008           |   |   | 2007          |   |
|                                                                                                        |   |           |   |   |          |   |
| Goodwill                                                                                                    |   | $              | 25.3   |   |          | $      | 17.4 |   |
| Finite      lived intangible assets, net                                                                    |   |           | 85.6   |   |          |   | 84.5 |   |
| Indefinite      lived intangible assets                                                                     |   |           | 3.6    |   |          |   | 3.0 |   |
| Less:  royalties      and licensed technologies, short-term included in other current      assets |   |           | (6.7   | )      |          |   | (7.9 | ) |
| Total      intangible assets                                                                                |   | $              | 107.8  |   |          | $      | 97.0 |   |

|  Year      ended June 30, |   |   |   |
|--------------------------------|--------|--------|--------|
| 2008      (fourth quarter)     |   | $      | 2.0    |   |
| 2009                           |   |   | 9.4    |   |
| 2010                           |   |   | 10.3   |   |
| 2011                           |   |   | 9.3    |   |
| 2012                           |   |   | 6.0    |   |
| 2013                           |   |   | 5.3    |   |

Table of Contents

|                                        |   | Numberof      Stock Options |   |   | Weighted      Average Exercise Price per Share |   |   | Weighted      Average Remaining Contractual Term (in years) |   |   | Aggregate      Intrinsic Value(1) |   |
|--------------------------------------------------|--------|-----------------------------|--------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|-----------------------------------|--------|
|                                             |   |                        |   |   |                                           |   |   |                                                        |   |   |                              |   |
|                                             |   |                        |   |   |                                           |   |   |                                                        |   |   |                              |   |
| Stock      options outstanding at June 30, 2007  |   |                        | 5.3    |   |                                           | $      | 18.16  |                                                        |   |   |                              |   |   |   |
| Granted                                          |   |                        | 0.6    |   |                                           |   | 31.77  |                                                        |   |   |                              |   |   |   |
| Exercised                                        |   |                        | (1.1   | )      |                                           |   | 16.07  |                                                        |   |   |                              |   |   |   |
| Expired      or Cancelled                        |   |                     |   |   |                                        |   |   |                                                        |   |   |                              |   |
| Forfeited                                        |   |                        | (0.1   | )      |                                           |   | 23.67  |                                                        |   |   |                              |   |   |   |
| Stock      options outstanding at March 31, 2008 |   |                        | 4.7    |   |                                           | $      | 20.29  |                                                        |   |   | 6.3                               |   |   | $ | 74.4 |   |
| Stock      options exercisable at March 31, 2008 |   |                        | 2.8    |   |                                           | $      | 17.63  |                                                        |   |   | 5.8                               |   |   | $ | 50.9 |   |

| Ø   | 89,911      shares of restricted stock, which restrictions will lapse evenly over four      years. |
|--------------------|----------------------------------------------------------------------------------------------------|

| Ø   | 89,911      equity-based performance units, which will vest upon achievement of      performance goals set by the Board.  The goals are based on      levels of total revenue and earnings per share over the period July 1,      2007 through June 30, 2010. The number of shares of stock awarded to      participants is dependent upon the achievement of the performance goals      and the extent to which each goal is achieved or exceeded, and can result      in shares issued up to 200% of the targeted number of shares under each      grant. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

|                                         |   | Three      Months    |   |   | Nine      Months     |   |
|----------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
|                                         |   | Ended      March 31, |   |   | Ended      March 31, |   |
|                                         |   | 2008                 |   |   | 2007                 |   |   | 2008 |   |   | 2007 |   |
|                                         |   |                 |   |   |                 |   |   |   |   |   |   |   |
| Net      income                              |   | $                    | 18.8   |   |                 | $      | 12.9 |   |   | $ | 45.9 |   |   | $ | 32.2 |   |
| Foreign      currency translation adjustment |   |                 | 0.6    |   |                 |   | 0.2 |   |   |   | 6.9 |   |   |   | 2.3 |   |
| Total      comprehensive income              |   | $                    | 19.4   |   |                 | $      | 13.1 |   |   | $ | 52.8 |   |   | $ | 34.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Minimum Commitments |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                     |   |
| Total      royalty and license      commitments                                                                                                                    |   | $                        | 130.0  |   |
| Advances      and payments      made                                                                                                                               |   |                     | (108.2 | ) |
| Potential      future      payments                                                                                                                                |   | $                        | 21.8   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Minimum      Commitments |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                     |   |
| 2008      (fourth      quarter)                                                                                                                    |   | $                        | 4.4    |   |
| 2009                                                                                                                                               |   |                     | 6.6    |   |
| 2010                                                                                                                                               |   |                     | 5.5    |   |
| 2011                                                                                                                                               |   |                     | 5.2    |   |
| 2012                                                                                                                                               |   |                     | 0.1    |   |
| Total                                                                                                                                              |   | $                        | 21.8   |   |

Table of Contents

Table of Contents

| ITEM      2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND RESULTS OF OPERATIONS |
|--------------|--------------------------------------------------------------------------------------------|

| Ø   | Multi-line,      multi-coin video gaming machines, in our Bluebird® and Orion Twinstar ™      cabinets; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Mechanical      reel-spinning gaming machines in our Bluebird      cabinets; |
|--------------------|------------------------------------------------------------------------------|

| Ø   | Video      poker machines in our Bluebird cabinets,      which are primarily offered as a casino-owned daily fee game, where the      casino purchases the base hardware and then leases the top box and game      for a low lease price point; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Replacement      parts and conversion kits for our legacy, Bluebird, Twinstar and AWP gaming      machines, and CPU-NXT® upgrade      kits; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Used      gaming machines that are acquired on a trade-in basis or that were      previously placed on a participationbasis; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| Ø   | AWP      gaming machines in certain international  markets; |
|--------------------|-------------------------------------------------------------|

| Ø   | Gaming-related      systems, including linked progressive systems and slot accounting systems      applicable to smaller international casinos;and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Gaming      stations in legacy, Bluebird and Twinstar cabinets in      limited cases under OEM agreements to certain third    parties. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Participation      games, which are gaming machines owned by us that we lease based upon any      of the following payment methods: (1) a percentage of the net win,      which is the casinos’ earnings generated by casino patrons playing the      gaming machine, (2) fixed daily fees, or (3) in the case of wide-area      progressive gaming machines, a percentage of the amount wagered or a      combination of a fixed daily fee and a percentage of the      amount wagered. We have the ability to place these gaming machines on      a participation basis because of the popularity of the brand and the      superior performance of the game, which generates higher wagering and net      win to the casinos or gaming machine operators than the gaming      machines we sell to casinos or other gaming machine      operators.  Participation games include the following      categories: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     Ø  | Wide-area      progressive participation games(“WAP”); |
|--------------------------------------|--------------------------------------------------------------------|

| Ø  | Local-area      progressive participation games(“LAP”); |
|--------------|---------------------------------------------------------------------|

| Ø  | Stand-alone      participation games; |
|--------------|---------------------------------------|

| Ø   | Casino-owned      daily fee games; |
|--------------------|------------------------------------|

| Ø   | Leased      gaming machines; |
|--------------------|------------------------------|

| Ø   | Video      lottery terminals; and |
|--------------------|-----------------------------------|

| Ø   | Licensing      revenues. |
|--------------------|--------------------------|

Table of Contents

Table of Contents

|                                                      |   | Three      Months Ended |   |   |   |   |   |                     |   |
|-----------------------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|--------------------------|--------|
|                                                      |   | March      31,          |   |   |   |   |   | Percent                  |   |
|                                                      |   | 2008                    |   |   | 2007   |   |   | Increase      (Decrease) |   |   | Increase      (Decrease) |   |
| Product      Sales Revenues:                              |   |                    |   |   |   |   |   |                     |   |   |   |   |
| New unit sales      revenues                              |   | $                       | 98.0   |   |   | $      | 80.2   |                     |   | $ | 17.8 |   |   |   | 22.2 | % |
| Other      product sales revenues                         |   |                    | 15.6   |   |   |   | 13.7   |                     |   |   | 1.9 |   |   |   | 13.9 |   |
| Total      product sales revenues                         |   | $                       | 113.6  |   |   | $      | 93.9   |                     |   | $ | 19.7 |   |   |   | 21.0 |   |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| New      units sold                                       |   |                    | 7,793  |   |   |   | 6,417  |                     |   |   | 1,376 |   |   |   | 21.4 |   |
| Average      sales price per new unit                     |   | $                       | 12,579 |   |   | $      | 12,506 |                     |   | $ | 73 |   |   |   | 0.6 |   |
| Gross      profit on product sales revenues(1)            |   | $                       | 54.5   |   |   | $      | 43.0   |                     |   | $ | 11.5 |   |   |   | 26.7 |   |
| Gross      margin on product sales revenues(1)            |   |                    | 48.0   | %      |   |   | 45.8   | %                        |   |   | 220 | bp |   |   | 4.8 |   |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Gaming      Operations Revenues:                          |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Participation      revenues                               |   | $                       | 52.0   |   |   | $      | 37.0   |                     |   | $ | 15.0 |   |   |   | 40.5 |   |
| Other      gaming operations revenues                     |   |                    | 7.2    |   |   |   | 5.7    |                     |   |   | 1.5 |   |   |   | 26.3 |   |
| Total      gaming operations revenues                     |   | $                       | 59.2   |   |   | $      | 42.7   |                     |   | $ | 16.5 |   |   |   | 38.6 |   |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| WAP      games at period end                              |   |                    | 1,765  |   |   |   | 1,282  |                     |   |   | 483 |   |   |   | 37.7 |   |
| LAP      games at period end                              |   |                    | 2,182  |   |   |   | 2,139  |                     |   |   | 43 |   |   |   | 2.0 |   |
| Stand-alone      games at period end                      |   |                    | 5,080  |   |   |   | 4,234  |                     |   |   | 846 |   |   |   | 20.0 |   |
| Total      installed participation base at period end     |   |                    | 9,027  |   |   |   | 7,655  |                     |   |   | 1,372 |   |   |   | 17.9 |   |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Average      participation installed base                 |   |                    | 8,897  |   |   |   | 7,359  |                     |   |   | 1,538 |   |   |   | 20.9 |   |
| Average      revenue per day per participation machine    |   | $                       | 64.25  |   |   | $      | 55.81  |                     |   | $ | 8.44 |   |   |   | 15.1 |   |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Installed      casino-owned daily fee games at period end |   |                    | 817    |   |   |   | 700    |                     |   |   | 117 |   |   |   | 16.7 |   |
| Average      casino-owned daily fee games installed base  |   |                    | 792    |   |   |   | 720    |                     |   |   | 72 |   |   |   | 10.0 |   |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Gross      profit on gaming operations revenues(1)        |   | $                       | 46.9   |   |   | $      | 34.7   |                     |   | $ | 12.2 |   |   |   | 35.2 |   |
| Gross      margin on gaming operations revenues(1)        |   |                    | 79.2   | %      |   |   | 81.3   | %                        |   |   | (210 | )bp |   |   | (2.6 | ) |
|                                                      |   |                    |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Total      revenues                                       |   | $                       | 172.8  |   |   | $      | 136.6  |                     |   | $ | 36.2 |   |   |   | 26.5 |   |
| Total      gross profit(1)                                |   | $                       | 101.4  |   |   | $      | 77.7   |                     |   | $ | 23.7 |   |   |   | 30.5 |   |
| Total      gross margin(1)                                |   |                    | 58.7   | %      |   |   | 56.9   | %                        |   |   | 180 | bp |   |   | 3.2 |   |

| bp | basis      points |
|----|-------------------|

|  (1) | As      used herein, gross profit and gross margin exclude depreciation      expense. |
|-----------|---------------------------------------------------------------------------------------|

Table of Contents

| Ø   | A      $17.8 million, or 22.2%, increase in new unit sales revenue as a      result of: |
|--------------------|----------------------------------------------------------------------------------------------|

| Ø   | A      1,376 unit, or 21.4%, increase in new units sold.  International      new units sold increased 52.4% over the prior year, reflecting strong,      broad-based demand across the range of international markets from Asia to      Latin America to Europe. North American new units sold in the March 2008      quarter increased by 8.4% from the March 2007 quarter due to the expansion      of Native      American casinos in California and market share gains.  Sales of      mechanical reel products in the March 2008 quarter were more than 2,100      units, or approximately 28% of total new units sold compared to 27% in the      prior year quarter. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The      average selling price of new gaming machines was essentially flat year      over year reflecting higher list prices offset by a lower average      international selling price, which resulted from the sale of specific      lower-priced units into select international markets aimed at utilizing      slower-turning inventory. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $1.9 million, or 13.9%, increase in other product sales revenues,      reflecting strong sales of top boxes and conversion      kits.   |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | We      earned revenue on nearly 2,300 conversion kits in the March 2008 quarter,      compared to approximately 2,100 conversion kits in the March 2007 quarter,      due to the positive response to our new video and mechanical reel      games. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | We      sold approximately 1,200 used gaming machines at higher prices in the      March 2008 quarter, compared to nearly 2,300 used gaming machines in the      March 2007 quarter. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $16.5 million, or 38.6%, growth in total gaming operations revenues due      primarily to: |
|--------------------|---------------------------------------------------------------------------------------------------|

| Ø   | A      20.9% increase in the average installed base of participation gaming      machines, driven by the growth in our WAP, LAP, and stand-alone installed      bases. The average number of units in the installed participation base in      the March 2008 quarter was 1,538 units higher than in the March 2007      quarter, reflecting continued strong performance of our Community      Gaming,  “Sensory Immersion” and Transmissive Reels      platforms in fiscal 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Overall      average revenues per day increased by $8.44, or 15.1%, principally      reflecting favorable player response to the new games for our three      innovative participation platforms. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Gross      margin on product sales revenues of 48.0% for the March 2008 quarter,      compared to 45.8% for the March 2007 quarter. Gross margin for the March      2008 quarter benefited from the continued success with the ongoing      implementation of our lean sigma process improvement and strategic      sourcing initiatives which      more than offset the impact from the sale of the certain lower-margin      products into international markets aimed at utilizing slower-turning      inventory. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Gross      margin on gaming operations revenues of 79.2% in the March 2008      quarter compared to 81.3% in the March 2007 quarter. This decrease      reflects the greater number of WAP gaming machines in the installed      participation base. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | Three      Months Ended March 31, |   |   |                 |   |   |     |   |
|---------------------------------|--------|-----------------------------------|--------|--------|----------------------|--------|--------|----------|--------|
|                            |   | 2008                              |   |   | 2007                 |   |   | Increase |   |
|                            |   | Dollar                            |   |   | As      % of Revenue |   |   | Dollar   |   |   | As      % of Revenue |   |   | Dollar |   |   | Percent |   |
|                            |   |                              |   |   |                 |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Research      and development   |   | $                                 | 19.5   |   |                 |   | 11.3   | %        |   | $ | 14.6 |   |   |   | 10.7 | % |   | $ | 4.9 |   |   |   | 33.6 | % |
| Selling      and administrative |   |                              | 34.0   |   |                 |   | 19.7   |     |   |   | 28.0 |   |   |   | 20.5 |   |   |   | 6.0 |   |   |   | 21.4 |   |
| Depreciation                    |   |                              | 18.3   |   |                 |   | 10.6   |     |   |   | 15.3 |   |   |   | 11.2 |   |   |   | 3.0 |   |   |   | 19.6 |   |
| Total      operating expenses   |   | $                                 | 71.8   |   |                 |   | 41.6   | %        |   | $ | 57.9 |   |   |   | 42.4 | % |   | $ | 13.9 |   |   |   | 24.0 | % |

Table of Contents

| Ø   | The      domestic manufacturing deduction, |
|--------------------|--------------------------------------------|

| Ø   | The      research and development credit expiration on December 31, 2007,      and |
|--------------------|------------------------------------------------------------------------------------|

| Ø   | The      impact of the additional unrecognized tax benefits resulting from the      implementation of FASB Interpretation No. 48 (“FIN 48”) effective July 1,      2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The      domestic manufacturing deduction, |
|--------------------|--------------------------------------------|

| Ø   | The      research and development tax credit,and |
|--------------------|--------------------------------------------------|

| Ø   | The      effect of the lapsing of the extraterritorial income credit at      December 31, 2006. |
|--------------------|------------------------------------------------------------------------------------------------------|

Table of Contents

|                                                      |   | Nine      months ended |   |   |   |   |   |     |   |
|-----------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                                      |   | March      31,         |   |   |   |   |   | Percent  |   |
|                                                      |   | 2008                   |   |   | 2007   |   |   | Increase |   |   | Increase |   |
| Product      Sales Revenues:                              |   |                   |   |   |   |   |   |     |   |   |   |   |
| New unit sales      revenues                              |   | $                      | 250.5  |   |   | $      | 221.0  |     |   | $ | 29.5 |   |   |   | 13.3 | % |
| Other      product sales revenues                         |   |                   | 48.7   |   |   |   | 35.3   |     |   |   | 13.4 |   |   |   | 38.0 |   |
| Total      product sales revenues                         |   | $                      | 299.2  |   |   | $      | 256.3  |     |   | $ | 42.9 |   |   |   | 16.7 |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| New      units sold                                       |   |                   | 19,751 |   |   |   | 18,058 |     |   |   | 1,693 |   |   |   | 9.4 |   |
| Average      sales price per new unit                     |   | $                      | 12,681 |   |   | $      | 12,243 |     |   | $ | 438 |   |   |   | 3.6 |   |
| Gross      profit on product sales revenues(1)            |   | $                      | 143.4  |   |   | $      | 114.3  |     |   | $ | 29.1 |   |   |   | 25.5 |   |
| Gross      margin on product sales revenues(1)            |   |                   | 47.9   | %      |   |   | 44.6   | %        |   |   | 330 | bp |   |   | 7.4 |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Gaming      Operations Revenues:                          |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Participation      revenues                               |   | $                      | 147.1  |   |   | $      | 111.2  |     |   | $ | 35.9 |   |   |   | 32.3 |   |
| Other      gaming operations revenues                     |   |                   | 18.2   |   |   |   | 14.3   |     |   |   | 3.9 |   |   |   | 27.3 |   |
| Total      gaming operations revenues                     |   | $                      | 165.3  |   |   | $      | 125.5  |     |   | $ | 39.8 |   |   |   | 31.7 |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| WAP      games at period end                              |   |                   | 1,765  |   |   |   | 1,282  |     |   |   | 483 |   |   |   | 37.7 |   |
| LAP      games at period end                              |   |                   | 2,182  |   |   |   | 2,139  |     |   |   | 43 |   |   |   | 2.0 |   |
| Stand-alone      games at period end                      |   |                   | 5,080  |   |   |   | 4,234  |     |   |   | 846 |   |   |   | 20.0 |   |
| Total      installed participation base at period end     |   |                   | 9,027  |   |   |   | 7,655  |     |   |   | 1,372 |   |   |   | 17.9 |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Average      participation installed base                 |   |                   | 8,671  |   |   |   | 7,159  |     |   |   | 1,512 |   |   |   | 21.1 |   |
| Average      revenue per day per participation machine    |   | $                      | 61.68  |   |   | $      | 56.65  |     |   | $ | 5.03 |   |   |   | 8.9 |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Installed      casino-owned daily fee games at period end |   |                   | 817    |   |   |   | 700    |     |   |   | 117 |   |   |   | 16.7 |   |
| Average      casino-owned daily fee games installed base  |   |                   | 763    |   |   |   | 733    |     |   |   | 30 |   |   |   | 4.1 |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Gross      profit on gaming operations revenues(1)        |   | $                      | 131.1  |   |   | $      | 99.5   |     |   | $ | 31.6 |   |   |   | 31.8 |   |
| Gross      margin on gaming operations revenues(1)        |   |                   | 79.3   | %      |   |   | 79.3   | %        |   |  |   |   |  |   |
|                                                      |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Total      revenues                                       |   | $                      | 464.5  |   |   | $      | 381.8  |     |   | $ | 82.7 |   |   |   | 21.7 |   |
| Total      gross profit(1)                                |   | $                      | 274.5  |   |   | $      | 213.8  |     |   | $ | 60.7 |   |   |   | 28.4 |   |
| Total      gross margin(1)                                |   |                   | 59.1   | %      |   |   | 56.0   | %        |   |   | 310 | bp |   |   | 5.5 |   |

| bp | basis      points |
|----|-------------------|

|  (1) | As      used herein, gross profit and gross margin exclude depreciation      expense. |
|-----------|---------------------------------------------------------------------------------------|

| Ø   | A      $29.5 million, or 13.3%, increase in new unit sales revenue as a      result of: |
|--------------------|----------------------------------------------------------------------------------------------|

| Ø   | A      1,693 unit, or 9.4%, increase in new units sold.  International      new units sold increased 42.5% over the prior year, reflecting growth in      Macau with our Mandarin-based games and continued growth throughout      Europe, South Africa and South America. North American new units sold in      the March 2008 nine month period decreased by 3.9% from the March 2007      nine month period due to the continued sluggish North American replacement      market. The North American new unit sales in the March 2008 period      benefitted from shipments of new units to four California casinos as a      result of amended compacts while the March 2007 period benefited from      initial and ongoing shipments of new units to properties located in the      newly opened Pennsylvania and Broward County, Florida jurisdictions, as      well as a strong contribution from Oklahoma which was a new market for us      at the time. Sales of mechanical reel products totaled 5,740 units, or      approximately 29% of total new units sold compared to 27% of units sold in      the prior nine month period. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      3.6% increase in the average selling price of new gaming units, principally      reflecting the benefit of higher listprices. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $13.4 million, or 38.0%, increase in other product sales revenues,      reflecting strong sales of conversion kits and used      games.   |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | We      earned revenue on 7,159 conversion kits in the March 2008 nine month      period, compared to approximately 4,000 conversion kits in the March 2007      nine month period, due to the positive response to our new video and      mechanical reel games. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | We      sold approximately 3,700 used gaming machines at higher prices in the      March 2008 nine month period, compared to approximately 5,600 used gaming      machines in the March 2007 nine monthperiod. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $39.8 million, or 31.7%, growth in total gaming operations revenues due      primarily to: |
|--------------------|---------------------------------------------------------------------------------------------------|

| Ø   |  A 21.1%      increase in the average installed base of participation gaming machines,      driven by the growth in our WAP, LAP, and stand-alone installed bases. The      period end WAP units in the installed base as of March 31, 2008 was 483      units higher than at March 31, 2007, reflecting continued strong      performance of our   “Sensory Immersion” and Transmissive Reels      platforms in fiscal 2008. Our controlled WAP roll-out strategy has led to      the desired result of a higher level of incremental footprint for the WAP      units. The WAP installed base accounted for 19.6% and 16.7% of the      installed base at March 31, 2008 and 2007,  respectively. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Overall      average revenues per day increased by $5.03, or 8.9%, principally      reflecting favorable player response to the new games for our three      innovative participation platforms. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Ø   | Gross      margin on product sales revenues of 47.9% for the March 2008 nine      month period, compared to 44.6% for the March 2007 nine month      period.  Gross margin for the March 2008 nine month period      reflects continued success with the ongoing implementation of our lean      sigma process improvement and strategic sourcing initiatives, greater      sales of higher-margin conversion kits and revenues from a VLT contract,      partially offset by a lower mix of premium-priced products than a year      ago. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Gross      margin on gaming operations revenues of 79.3% in the March 2008 nine month      period was flat to the March 2007 nine month period, reflecting the      positive influence of the high performing Community Gamming,      “Sensory Immersion” and Transmissive Reels  games offset by      the greater number of WAP gaming machines in the installed      base. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | Nine      months ended March 31, |   |   |                 |   |   |     |   |
|---------------------------------|--------|---------------------------------------|--------|--------|----------------------|--------|--------|----------|--------|
|                            |   | 2008                                  |   |   | 2007                 |   |   | Increase |   |
|                            |   | Dollar                                |   |   | As      % of Revenue |   |   | Dollar   |   |   | As      % of Revenue |   |   | Dollar |   |   | Percent |   |
|                            |   |                                  |   |   |                 |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Research      and development   |   | $                                     | 53.8   |   |                 |   | 11.6   | %        |   | $ | 41.2 |   |   |   | 10.8 | % |   | $ | 12.6 |   |   |   | 30.6 | % |
| Selling      and administrative |   |                                  | 95.9   |   |                 |   | 20.6   |     |   |   | 78.2 |   |   |   | 20.5 |   |   |   | 17.7 |   |   |   | 22.6 |   |
| Depreciation                    |   |                                  | 54.3   |   |                 |   | 11.7   |     |   |   | 46.5 |   |   |   | 12.2 |   |   |   | 7.8 |   |   |   | 16.8 |   |
| Total      operating expenses   |   | $                                     | 204.0  |   |                 |   | 43.9   | %        |   | $ | 165.9 |   |   |   | 43.5 | % |   | $ | 38.1 |   |   |   | 23.0 | % |

| Ø   | The      domestic manufacturing deduction, |
|--------------------|--------------------------------------------|

| Ø   | The      research and development credit expiration on December 31, 2007,      and |
|--------------------|------------------------------------------------------------------------------------|

| Ø   | The      impact of unrecognized tax benefits resulting from the implementation of      FASB Interpretation No. 48 (“FIN 48”) effective July 1,    2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Utilization      of the export sales deduction, which expired in December    2006, |
|--------------------|------------------------------------------------------------------------------------|

| Ø   | The      domestic manufacturing deduction,and |
|--------------------|-----------------------------------------------|

| Ø   | The      effect of the retroactive reinstatement of the research and development      tax credit legislation which was reinstated in December 2006, retroactive      to January 1, 2006. The effective tax rate includes the credit earned from      January 1, 2006 thru June 30, 2006, which aggregated $0.01 per diluted      share, in addition to the tax credit earned during the nine month period      ended March 31, 2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Existing      cash and cash equivalents, |
|--------------------|------------------------------------------|

| ·   | Cash      flows from operations, and |
|--------------------|--------------------------------------|

| ·   | Debt      capacity available under our revolving credit  facility. |
|--------------------|--------------------------------------------------------------------|

|                                                      |   |               |   |   |              |   |   | Increase |   |
|-----------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|----------|--------|
|                                                      |   | March      31,2008 |   |   | June      30,2007 |   |   | Dollar   |   |   | Percent |   |
|                                                      |   |               |   |   |              |   |   |     |   |   |   |   |
| Total      cash, cash equivalents, and restricted cash(1) |   | $                  | 112.4  |   |              | $      | 53.2   |     |   | $ | 59.2 |   |   |   | 111.3 | % |
| Total      current assets(A)                              |   |               | 402.6  |   |              |   | 342.2  |     |   |   | 60.4 |   |   |   | 17.7 |   |
| Total      assets                                         |   |               | 744.1  |   |              |   | 655.7  |     |   |   | 88.4 |   |   |   | 13.5 |   |
| Total      current liabilities(B)                         |   |               | 96.6   |   |              |   | 86.7   |     |   |   | 9.9 |   |   |   | 11.4 |   |
| Long-term      debt                                       |   |               | 115.0  |   |              |   | 115.0  |     |   |  |   |   |  |   |
| Stockholders’      equity                           |   |               | 507.0  |   |              |   | 433.6  |     |   |   | 73.4 |   |   |   | 16.9 |   |
| Net      working capital (A) – (B)                  |   |               | 306.0  |   |              |   | 255.5  |     |   |   | 50.5 |   |   |   | 19.8 |   |

|   | (1) | Includes      restricted cash of $18.5 million and $16.0 million as of March 31, 2008      and June 30, 2007, respectively. Cash required for funding WAP      systems jackpot payments is considered restricted cash and is not      available for general corporatepurposes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | An      increase in cash, cash equivalents and restricted cash of $59.2 million      due primarily to the strong revenues and subsequent cash collections in      the March 2008 nine month period; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | An      increase in total current accounts and notes receivable, net, of $8.7      million to $182.6 million compared to $173.9 million at June 30, 2007, due      to the increase in our revenues during the March 2008 period partially      offset by a reduction in our days sales  outstanding; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      decrease in inventories of $14.2 million to $65.1 million due to focused      efforts on increasing inventory turnsand |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| Ø   | An      increase in accounts payable of $7.8 million due to additional working      capital management and internationalexpansion. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

|                                                       |   | Nine      Months Ended March 31, |   |   |   |   |
|------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|
|                                                       |   | 2008                                  |   |   | 2007   |   |   | Change |   |
| Net      cash provided by (used in):                       |   |                                  |   |   |   |   |   |   |   |
| Operating      activities                                  |   | $                                     | 126.4  |   |   | $      | 68.4 |   |   | $ | 58.0 |   |
| Investing      activities                                  |   |                                  | (80.6  | )      |   |   | (118.1 | ) |   |   | 37.5 |   |
| Financing      activities                                  |   |                                  | 11.0   |   |   |   | 26.8 |   |   |   | (15.8 | ) |
| Effect      of exchange rates on cash and cash equivalents |   |                                  | (0.1   | )      |   |   | 1.6 |   |   |   | (1.7 | ) |
| Net      increase (decrease) in cash and cash equivalents  |   | $                                     | 56.7   |   |   | $      | (21.3 | ) |   | $ | 78.0 |   |

| Ø   | A      positive impact from the $13.7 million increase in net income and a $7.8      million increase in depreciation, |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      positive impact from a $15.8 million increase in non-cash items, including      share-based compensation, amortization of intangibles and      other  assets, other non-cash items and bad debt expense,      and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      positive impact from improved utilization of working capital indicated by      a $18.9 million net decrease in changes in operating assets and      liabilities, as the March 2008 nine month period decrease in accounts      receivable and inventories was only partially offset by a slight increase      in notes receivable and other currentassets. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | Lower      cash used in purchasing businesses by $20.7 million as only $0.2 million      of cash was used for the acquisition of SiP in the March 2008 nine month      period compared to net cash of $20.9 million used for the acquisition of      Orion Gaming during the March 2007period. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $14.5 million decrease in the amount invested in gaming operations      machines, top boxes and related equipment during the March 2008 nine month      period to $37.8 million.  We expect the rate of investment      in gaming operations equipment to continue to moderate in fiscal 2008 and      2009.   |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $6.6 million increase in the amount invested in property, plant and      equipment during the March 2008 nine month period to $30.8 million, due      primarily to the expansion of our Waukegan, Illinois facility, as well as      investments in manufacturing tools and internal and purchased      software. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | A      $9.6 million reduction in investments and advances in royalties, licensed      technologies, patents and trademarks to $11.1 million in the March 2008      nine month period as we entered into fewer new  agreements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ø   | The      use of $15.0 million in the March 2008 nine month period to repurchase      common stock. |
|--------------------|----------------------------------------------------------------------------------------------------|

| Contractual      Obligations                                       |   | Total  |   |   | Less      than1      Year |     |   | 1-3      Years |   |     | 3-5      Years |   |     | More      than5      Years |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|---------------------------|----------|--------|----------------|--------|----------|----------------|--------|----------|----------------------------|--------|
| Operating      leases                                              |   | $      | 24.8   |   |                      | $        | 4.2    |           |   | $        | 6.3            |   |     | $                          | 6.0    |   |   | $ | 8.3 |   |
| Royalty      payments                                              |   |   | 21.8   |   |                      |     | 9.4    |           |   |     | 11.0           |   |     |                       | 1.4    |   |   |  |   |
| Non-cancelable      raw material purchase orders                   |   |   | 1.6    |   |                      |     | 1.6    |           |   |  |           |   |  |                       |   |  |   |
| Accrued      WAP jackpot liability                                 |   |   | 11.2   |   |                      |     | 11.2   |           |   |  |           |   |  |                       |   |  |   |
| Convertible      subordinated notes                                |   |   | 115.0  |   |                      |  |   |           |   | 115.0    |           |   |  |                       |   |  |   |
| Interest      payments                                             |   |   | 7.9    |   |                      |     | 3.2    |           |   |     | 4.7            |   |     |                    |   |   |  |   |
| Performance      bonds                                             |   |   | 1.0    |   |                      |     | 1.0    |           |   |  |           |   |  |                       |   |  |   |
| Other,      including guaranteed minimums in employment agreements |   |   | 16.0   |   |                      |     | 14.3   |           |   |     | 0.4            |   |     |                       | 0.4    |   |   |   | 0.9 |   |
| Total                                                              |   | $      | 199.3  |   |                      | $        | 44.9   |           |   | $        | 137.4          |   |     | $                          | 7.8    |   |   | $ | 9.2 |   |

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Table of Contents

QUANTITATIVE

 CONTROLS

Table of Contents

LEGAL

RISK

UNREGISTERED

| Period                                          |   | Total      Number of Shares Purchased |    |   | Average      Price Paid Per Share |   |   | Total      Number of Shares Purchased as Part of Publicly Announced Plans or Programs      (1) |   |   | Maximum      Number (Or Approximate Dollar Value) of Shares that May Yet Be Purchased      under the Plans or Programs(1) |   |
|-------------------------------------------------|--------|---------------------------------------|---------|--------|-----------------------------------|--------|--------|------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|
| January      1, 2008 – January 31, 2008   |   |                                  | --      |   |                              |   | --     |                                                                                           |   |   | --                                                                                                                        |   |   | $ | 40,018,458 |   |
| February      1, 2008 – February 29, 2008 |   |                                  | --      |   |                              |   | --     |                                                                                           |   |   | --                                                                                                                        |   |   | $ | 40,018,458 |   |
| March 1,      2008 – March 31, 2008  |   |                                  | 139,680 |   |                              |   | 35.72  |                                                                                           |   |   | --                                                                                                                        |   |   | $ | 35,029,088 |   |
|  Total                                     |   |                                  | 139,680 |   |                              |   | 35.72  |                                                                                           |   |   | --                                                                                                                        |   |   | $ | 35,029,088 |   |

| (1)   | On      August 6, 2007, our Board of Directors authorized the repurchase of up to      $50 million of our common stock over the following twenty-four months.      Pursuant to the authorization, purchases may be made from time to time in      the open market, through block purchases or in privately negotiated      transactions. The timing and actual number of shares repurchased will      depend on market conditions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

DEFAULTS 

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SUBMISSION

OTHER

| (a)   | None. |
|-----------------|-------|

| (b)   | None. |
|-----------------|-------|

EXHIBITS

|   |                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1    | Amended      and Restated Certificate of Incorporation of WMS dated February 17, 1987;      Certificate of Amendment dated January 28, 1993; and Certificate of      Correction dated May 4, 1994, incorporated by reference to our Annual      Report on Form 10-K for the year ended June 30, 1994.                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.2    | Certificate      of Amendment to the Amended and Restated Certificate of Incorporation of      WMS, as filed with the Secretary of the State of Delaware on February 25,      1998, incorporated by reference to our Quarterly Report on Form 10-Q for      the fiscal quarter ended March 31, 1998.                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.3    | Form      of Certificate of Designation of Series A Preferred Stock, incorporated by      reference to our Registration Statement on Form 8-A (File no. 1-8300)      filed September 25, 1998 (“the Form 8-A”).                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.4    | Amended      and Restated By-Laws of WMS, as amended and restated through May 7, 2007,      incorporated by reference to WMS’ Current Report on Form 8-K filed on May      10, 2007.                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.1    | Indenture      dated June 25, 2003 between WMS and BNY Midwest Trust Company, and      Form of Note incorporated by reference to WMS’ Current Report on      Form 8-K filed June 25, 2003.                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.1   | IGT/WMS      Patent Cross License Agreement, between WMS Gaming Inc. and International      Game Technology, dated as February 14, 2008, incorporated by reference to      our Current Report on Form 8-K, filed on February 21,      2008.  Portions of this exhibit have been omitted under a      request for confidential treatment filed separately with the      commission. |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.2   | Advisory      Agreement between Louis J. Nicastro and WMS Industries Inc., dated      May 5, 2008.                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 31     | Certifications      of the Chief Executive Officer and Chief Financial Officer pursuant to      Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 32     | Certifications      of the Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                           |

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SIGNATURES

|                               | WMS      INDUSTRIES INC.                                      |
|------------------------------------|---------------------------------------------------------------|
|                               |                                                          |
| Dated:  May      9, 2008 | By: /s/ Scott D.  Schweinfurth                                |
|                               | Scott      D. Schweinfurth                                    |
|                               | Executive      Vice President,                                |
|                               | Chief      Financial Officer and Treasurer                    |
|                               | (Authorized      Officer andPrincipal      Financial Officer) |
|                               |                                                          |

|                               | WMS      INDUSTRIES INC.                                         |
|------------------------------------|------------------------------------------------------------------|
|                               |                                                             |
| Dated:  May      9, 2008 | By: /s/ John P. McNicholas  Jr.                                  |
|                               | John      P. McNicholas Jr.                                      |
|                               | Vice      President, Controller andChief      Accounting Officer |
|                               | (Principal      Accounting Officer)                              |
|                               |                                                             |

Table of Contents

|   |                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1    | Amended      and Restated Certificate of Incorporation of WMS dated February 17, 1987;      Certificate of Amendment dated January 28, 1993; and Certificate of      Correction dated May 4, 1994, incorporated by reference to our Annual      Report on Form 10-K for the year ended June 30, 1994.                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.2    | Certificate      of Amendment to the Amended and Restated Certificate of Incorporation of      WMS, as filed with the Secretary of the State of Delaware on February 25,      1998, incorporated by reference to our Quarterly Report on Form 10-Q for      the fiscal quarter ended March 31, 1998.                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.3    | Form      of Certificate of Designation of Series A Preferred Stock, incorporated by      reference to our Registration Statement on Form 8-A (File no. 1-8300)      filed September 25, 1998 (“the Form 8-A”).                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.4    | Amended      and Restated By-Laws of WMS, as amended and restated through May 7, 2007,      incorporated by reference to WMS’ Current Report on Form 8-K filed on May      10, 2007.                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.1    | Indenture      dated June 25, 2003 between WMS and BNY Midwest Trust Company, and      Form of Note incorporated by reference to WMS’ Current Report on      Form 8-K filed June 25, 2003.                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.1   | IGT/WMS      Patent Cross License Agreement, between WMS Gaming Inc. and International      Game Technology, dated as February 14, 2008, incorporated by reference to      our Current Report on Form 8-K, filed on February 21,      2008.  Portions of this exhibit have been omitted under a      request for confidential treatment filed separately with the      commission. |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.2   | Advisory      Agreement between Louis J. Nicastro and WMS Industries Inc., dated May 5,      2008.                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 31     | Certifications      of the Chief Executive Officer and Chief Financial Officer pursuant to      Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                         |
| 32     | Certifications      of the Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                           |

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