TABLE OFCONTENTS

|                                                                        |   |                                                |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------------|
| ILLINOIS(State      or other jurisdiction of incorporation or organization) |   | 36-1944630(IRS      Employer Identification Number) |

|                               |   |                                          |
|------------------------------------|--------|-----------------------------------------------|
| Common      Stock, $1.00 par value |   | NYSE      Amex                                |
| Title      of each class           |   | Name      of each exchange on whichregistered |

|                      |                |                                                                                |                             |
|---------------------------|---------------------|-------------------------------------------------------------------------------------|----------------------------------|
| Large accelerated filer o | Accelerated filer o | Non-accelerated      filer o(Do      not check if a Smaller      Reporting Company) | Smaller Reporting Company      x |

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|                                                  |                                                                                                                   |   |   |   |   |   |   |   |
|-------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| PART  I                                               |
|                                                  | Item 1.      BUSINESS                                                                                             |
|                                                  | Item 2.      PROPERTIES                                                                                           |
|                                                  | Item 3. LEGAL      PROCEEDINGS                                                                                    |
|                                                  | Item 4. SUBMISSION OF      MATTERS TO A VOTE OF SECURITY HOLDERS                                                  |
| PART  II                                              |
|                                                  | Item 5. MARKET FOR THE      REGISTRANT’S COMMON STOCK AND RELATED STOCKHOLDERS      MATTERS                      |
|                                                  | Item 6.      SELECTED FINANCIAL DATA                                                                              |
|                                                  | Item 7. MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS     |
|                                                  | Item 7A. QUANTITATIVE AND      QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                          |
|                                                  | Item 8. FINANCIAL STATEMENTS      AND SUPPLEMENTARY DATA                                                          |
|                                                  | Item 9. CHANGES IN AND      DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE            |
|                                                  | Item 9A. CONTROLS AND      PROCEDURES                                                                             |
|                                                  | Item 9B. OTHER      INFORMATION                                                                                   |
| PART    III                                           |
|                                                  | Item 10. DIRECTORS AND      EXECUTIVE OFFICERS OF THE REGISTRANT                                                  |
|                                                  | Item 11. EXECUTIVE      COMPENSATION                                                                              |
|                                                  | Item 12. SECURITY OWNERSHIP      OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER      MATTERS |
|                                                  | Item 13. CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS                                                      |
|                                                  | Item 14. PRINCIPAL      ACCOUNTING FEES AND SERVICES                                                              |
| PART  IV                                              |
|                                                  | Item 15. EXHIBITS, FINANCIAL      STATEMENT SCHEDULES                                                             |
| SIGNATURES                                            |
|                                                  |
|                                                  |
|                                                  |
| Annual Report to      Shareholders                    |
| Consent of Blackman Kallick      LLP                  |
| Certification of CEO Pursuant to      Section 302     |
| Certification of CFO Pursuant to      Section 302     |
| Statement of CEO and CFO Pursuant      to Section 906 |

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TABLE OFCONTENTS

Item 1.BUSINESS

|  Market |   |   |   |   | 2009 |   |   |   | 2008   |   |   |   | 2007   |
|--------------|--------|--------|--------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|
| Gaming       |   |   |   |   | 93   | %      |   |   |   | 90     | %      |   |   |   | 83 | % |
| Amusement    |   |   |   |   | 7    | %      |   |   |   | 10     | %      |   |   |   | 17 | % |
| Totals       |   |   |   |   | 100  | %      |   |   |   | 100    | %      |   |   |   | 100 | % |

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Item 2.PROPERTIES

Item 3. LEGALPROCEEDINGS

Item 4. SUBMISSION OFMATTERS TO A VOTE OF SECURITY HOLDERS

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TABLE OFCONTENTS

PARTII

Item
 5. MARKET FOR THEREGISTRANT’S COMMON STOCK AND RELATED STOCKHOLDERSMATTERS

Item 6. SELECTEDFINANCIAL DATA

Item 7. MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONS

Item 7A. QUANTITATIVEAND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item 8. FINANCIALSTATEMENTS AND SUPPLEMENTARY DATA

|   |   |   |   |                                                                                                                   |
|--------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------|
|   |   | -      |   | Consolidated      Balance Sheets as of December 31, 2009 and 2008                                                 |
|   |   | -      |   | Consolidated      Statements of Operations for years ended December 31, 2009, 2008, and      2007                 |
|   |   | -      |   | Consolidated      Statements of Shareholders’ Equity for years ended December 31, 2009,      2008, and 2007 |
|   |   | -      |   | Consolidated      Statements of Cash Flows for years ended December 31, 2009, 2008, and      2007                 |
|   |   | -      |   | Notes      to the Consolidated Financial Statements                                                                    |
|   |   | -      |   | Independent      Auditors’ Reports                                                                               |

Item 9. CHANGES IN ANDDISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIALDISCLOSURE

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Item 9A. CONTROLS ANDPROCEDURES

Item 9B. OTHERINFORMATION

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PARTIII

Item 10. DIRECTORS ANDEXECUTIVE OFFICERS OF THE REGISTRANT

Item 11. EXECUTIVECOMPENSATION

Item 12. SECURITYOWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERMATTERS

Item 13. CERTAINRELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTORINDEPENDENCE

Item 14. PRINCIPALACCOUNTING FEES AND SERVICES

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PARTIV

Item 15. EXHIBITS,FINANCIAL STATEMENT SCHEDULES

|   |   |   |   |                                                                                                                   |
|--------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------|
|   |   | -      |   | Consolidated      Balance Sheets as of December 31, 2009 and 2008                                                 |
|   |   |   |   |                                                                                                                   |
|   |   | -      |   | Consolidated      Statements of Operations for years ended December 31, 2009, 2008, and      2007                 |
|   |   |   |   |                                                                                                                   |
|   |   | -      |   | Consolidated      Statements of Shareholders’ Equity for years ended December 31, 2009,      2008, and 2007 |
|   |   |   |   |                                                                                                                   |
|   |   | -      |   | Consolidated      Statements of Cash Flows for years ended December 31, 2009, 2008, and      2007                 |
|   |   |   |   |                                                                                                                   |
|   |   | -      |   | Notes      to the Consolidated Financial Statements                                                                    |
|   |   |   |   |                                                                                                                   |
|   |   | -      |   | Independent      Auditors’ Reports                                                                               |

| 3.1    |   | Articles      of Incorporation of the Company, as amended, filed as Exhibit 3.1 of      the Company’s Annual Report on Form 10-K for the year ended      December 31, 1994 and incorporated herein by    reference.                                                   |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
| 3.2    |   | By-Laws      of the Company, as amended and restated and in force February 18, 2010,      filed as Exhibit 3.2 of the Company’s Current Report on Form 8-K dated      February 23, 2010 and incorporated herein by reference.                                                   |
|   |   |                                                                                                                                                                                                                                                                                  |
| 4.1    |   | Form      of Warrant filed as Exhibit 4.1 of the Company’s Current Report on      Form 8-K dated September 23, 2004 and incorporated herein by      reference.                                                                                                        |
|   |   |
| 4.2    |   | Form      of Warrant filed as Exhibit 4.2 of the Company’s Current Report on      Form 8-K dated September 23, 2004 and incorporated herein by      reference.                                                                                                        |
|   |   |
| 10.1   |   | Employment      Agreement dated February 29, 1996 between the Company and Anthony      Spier, as amended, filed as Exhibit 10.1 of the Company’s Annual      Report on Form 10-K for the year ended December 31, 1995 and      incorporated herein by reference. |
|   |   |
| 10.2   |   | First,      Second, Third and Fourth Amendment to the Employment Agreement between the      Company and Anthony Spier filed as Exhibit 10.15 of the Company's Annual      Report on Form 10-K for the year ended December 31, 2004 and incorporated      herein by reference.    |
| 10.3   |   | Fifth      Amendment to the Employment Agreement between the Company and Anthony      Spier filed as Exhibit 10.3 of  the Company’s Annual Report on      Form 10-K for the year ended December 31, 2007 and incorporated herein by      reference.              |
| 10.4   |   | Wells-Gardner      Electronics Corporation Employee 401K Plan dated January 1, 1990, as      amended, filed as Exhibit 10.10 of the Company’s Annual Report on      Form 10-K for the year ended December 31, 1993 and incorporated      herein by reference.    |
|   |   |
| 10.5   |   | Wells-Gardner      Electronics Corporation 1996 Nonemployee Director Plan filed as Annex A to      the Company’s Proxy Statement for the Annual Meeting of Shareholders to be      held on April 23, 1996 and incorporated herein by    reference.                              |
|   |   |
| 10.6   |   | Wells-Gardner      Electronics CorporationAmended and Restated      Incentive Stock Plan, as amended and filed as Exhibit 4.1 of      the Company’s Form S-8, dated August 21, 1998 and incorporated herein      by reference.                                   |
| 10.7   |   | Acquisition      of Certain Assets of American Gaming and Electronics dated      January 12, 2000, filed as Exhibits 2.1, 2.2 and 2.3 to the Company’s      Current Report on Form 8-K, dated January 27, 2000 and incorporated      herein by reference.             |

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| 10.8   |   | Executive      Stock Award Plan, filed as Exhibits 4.1 and 4.2 of the Company’s Form S-8,      dated May 12, 2000 and incorporated herein by    reference.                                                                                                                                                           |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
| 10.9   |   | Agreement      dated July 3, 2006, between the Company and Local 1031, I.B.E.W., AFL-CIO      filed as Exhibit 10.9 of the Company’s Annual Report on Form 10-K for the      year ended December 31, 2006 and incorporated herein by      reference.                                                                      |
|   |   |
| 10.10  |   | Agreement      dated July 2, 2009 between the Company and Local 1031, I.B.E.W., AFL-CIO      filed as Exhibit 10.13 of the Company's 10-Q for the quarter ended June      30, 2009 and incorporated herein by reference.                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                            |
| 10.11  |   | Securities      Purchase Agreement dated as of September 20, 2004 by and among the      Company and the purchasers identified on the signature page thereto filed      as Exhibit 10.1 of the Company’s Current Report on Form 8-K dated      September 23, 2004 and incorporated herein by    reference.  |
|   |   |
| 10.12  |   | Credit      and Security Agreement with Wells-Fargo Bank, National Association,      dated August 21, 2006 filed as Exhibit 10.1 to the Company’s      Form 8K/A dated August 25, 2006 and incorporated herein by      reference.                                                                     |
|   |   |
| 10.13  |   | Third      Amendment to Credit and Security Agreement with Wells-Fargo Bank, National      Association, dated September 15, 2009 filed as Exhibit 10.14 to the      Company's Quarterly Report on Form 10-Q for the quarter ended September      30, 2009 and incorporated herein by reference.                                 |
|   |   |                                                                                                                                                                                                                                                                                                                            |
| 10.14  |   | Audited      financial statements of the Company’s joint venture, Wells-Eastern Asia      Displays (m) Sdn. Bhd. for the year ended October 5, 2007 filed as      Exhibit 10.12 of the Company’s Annual Report on Form 10-K for the year      ended December 31, 2007 and incorporated herein by    reference. |
|   |   |                                                                                                                                                                                                                                                                                                                            |
| 10.15  |   | Employment      Agreement dated as of May 13, 2008 between the Company and James F. Brace,      filed as Exhibit 10.13 of the Company's Current Report on Form 8-K dated      May 14, 2009 and incorporated herein by reference.                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                            |
| 13.0   |   | Company’s      Annual Report to Shareholders for the year ended December 31,      2009.                                                                                                                                                                                                                         |
| 14.0   |   | Wells-Gardner      Code of Business Conduct and Ethics filed as Exhibit 14.0 of the Company's      Annual Report on Form 10-K for the year ended December 31, 2008 and      incorporated herein by reference.                                                                                                              |
| 23.0   |   | Consent      of Blackman Kallick LLP.                                                                                                                                                                                                                                                                                           |
|   |   |
| 31.1   |   | Certification      of Chief Executive Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                              |
|   |   |
| 31.2   |   | Certification      of Chief Financial Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                              |
|   |   |
| 32.1   |   | Statement      of 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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PRESSRELEASES

| DATE           |   | TITLE                                                                                                                                                                       |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                        |
| 01/27/09       |   | Wells-Gardner      Announces The Granting of Its First LCD Patent                                                                                                           |
|           |   |                                                                                                                                                                        |
| 02/09/09       |   | Wells-Gardner      Announces Delay of its Fourth Quarter Conference Call                                                                                                    |
|           |   |                                                                                                                                                                        |
| 02/18/09       |   | Wells-Gardner      Reports Improved Fourth Quarter and Fiscal 2008Earnings                                                                                                  |
|           |   |                                                                                                                                                                        |
| 03/31/09  |   | Wells-Gardner      Ships First Order of Flip Video Products                                                                                                                 |
|           |   |                                                                                                                                                                        |
| 04/30/09  |   | Wells-Gardner      Electronics to Report First Quarter 2009 Results and Host Conference Call      and Webcast                                                               |
|           |   |                                                                                                                                                                        |
| 05/06/09  |   | Wells-Gardner      Reports First Quarter 2009 Earnings                                                                                                                      |
|           |   |                                                                                                                                                                        |
| 07/14/09  |   | Wells-Gardner      Updates Expectations on 2nd Quarter 2009                                                                                                                 |
|           |   |                                                                                                                                                                        |
| 08/04/09  |   | Wells-Gardner      Reports Second Quarter Earnings Increased by 185 Per Cent to $484,000 or      $0.05 Per Share                                                            |
|           |   |                                                                                                                                                                        |
| 08/11/09  |   | Wells-Gardner      Announces It Has Been Selected as One of Two Approved Suppliers of 22 Inch      LCDs by Aristocrat                                                       |
|           |   |                                                                                                                                                                        |
| 09/09/09  |   | Wells-Gardner      Announces It Has Developed the Only 3D Product With True 2D      Capabilities                                                                            |
|           |   |                                                                                                                                                                        |
| 09/16/09  |   | Wells-Gardner      Announces Credit Agreement Extension With Wells Fargo to August      2013                                                                                |
|           |   |                                                                                                                                                                        |
| 10/23/09  |   | Wells-Gardner      Announces Investor Presentation at the Deutsche Bank 2009 Gaming      Investment Forum at G2E                                                            |
|           |   |                                                                                                                                                                        |
| 11/10/09  |   | Wells-Gardner      Reports Third Quarter Earnings Increased by $450,000                                                                                                     |
|           |   |                                                                                                                                                                        |
| 11/17/09  |   | Wells-Gardner      Reports Its Subsidiary American Gaming & Electronics Has Signed a      Letter of Intent to Distribute SPIELO Terminals Into Illinois VLT      Market |
|           |   |                                                                                                                                                                        |

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SIGNATURES

|   |   |                    |   |   |   |                                                    |   |   |   |                |
|--------|--------|-------------------------|--------|--------|--------|---------------------------------------------------------|--------|--------|--------|---------------------|
| By:    |   | /s/      ANTHONY SPIER  |   |   |   | Chairman      of the Board, President                   |   |   |   |                |
|   |   | Anthony      Spier      |   |   |   | &      Chief Executive Officer                      |   |   |   | March      10, 2010 |
|   |   |                    |   |   |   |                                                    |   |   |   |                |
|   |   | /s/      JAMES F. BRACE |   |   |   | Executive      Vice President,Secretary,      Treasurer |   |   |   |                |
|   |   | James      F. Brace     |   |   |   | &      Chief Financial Officer                      |   |   |   |                |
|   |   |                    |   |   |   | (Principal      Accounting Officer)                     |   |   |   | March      10, 2010 |

|                        |   |   |   |                                  |   |   |   |                |
|-----------------------------|--------|--------|--------|---------------------------------------|--------|--------|--------|---------------------|
| /s/      ANTHONY SPIER      |   |   |   | Chairman      of the Board, President |   |   |   |                |
|   Anthony      Spier   |   |   |   | &      Chief Executive Officer    |   |   |   | March      10, 2010 |
|                        |   |   |   |                                  |   |   |   |                |
| /s/      MERLE BANTA        |   |   |   |                                  |   |   |   |                |
|   Merle      Banta     |   |   |   | Director                              |   |   |   | March      10, 2010 |
|                        |   |   |   |                                  |   |   |   |                |
| /s/      MARSHALL L. BURMAN |   |   |   |                                  |   |   |   |                |
| Marshall      L. Burman     |   |   |   | Director                              |   |   |   | March      10, 2010 |
|                        |   |   |   |                                  |   |   |   |                |
| /s/      FRANK R. MARTIN    |   |   |   |                                  |   |   |   |                |
|   Frank R.      Martin |   |   |   | Director                              |   |   |   | March      10, 2010 |

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SCHEDULEII

|                                            |     Year Ended      December 31, |
|-------------------------------------------------|------------------------------------------------------|
| ALLOWANCE FOR DOUBTFUL      ACCOUNTS            |                                                 | 2009 |   | 2008 |   | 2007 |
| Beginning      balance                          |                                                 | $ | 160 |   |   | $ | 154 |   |   | $ | 253 |   |
| Additions      charged to expense               |                                                 | $ | 101 |   |   | $ | 31 |   |   | $ | 79 |   |
| Deductions                                      |                                                 | $ | (13 | ) |   | $ | (25 | ) |   | $ | (178 | ) |
| Balance      at end of year                     |                                                 | $ | 248 |   |   | $ | 160 |   |   | $ | 154 |   |
|                                            |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| INVENTORY      OBSOLESCENCE RESERVE:            |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      balance                          |                                                 | $ | 2,734 |   |   | $ | 2,145 |   |   |        $ |        1,935 |   |
| Additions      charged to expense               |                                                 | $ | 970 |   |   | $ | 1,671 |   |   | $ | 549 |   |
| Deductions                                      |                                                 | $ | (1,155 | ) |   | $ | (1,082 | ) |   | $ | (339 | ) |
| Balance      at end of year                     |                                                 | $ | 2,549 |   |   | $ | 2,734 |   |   | $ | 2,145 |   |
|                                            |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| DEFERRED      TAX ASSET VALUATION ALLOWANCE:    |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      balance                          |                                                 | $ | 3,166 |   |   | $ | 3,361 |   |   | $ | 3,711 |   |
| Additions      charged (credited to) to expense |                                                 | $ | (153 | ) |   | $ | (195) |   |   | $ | (350 | ) |
| Balance      at end of year                     |                                                 | $ | 3,013 |   |   | $ | 3,166 |   |   | $ | 3,361 |   |
| WARRANTY      RESERVE:                          |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      balance                          |                                                 | $ | 183 |   |   | $ | 200 |   |   | $ | 206 |   |
| Additions                                       |                                                 | $ | 160 |   |   | $ | 334 |   |   | $ | 336 |   |
| Payments                                        |                                                 | $ | (253 | ) |   | $ | (351 | ) |   | $ | (342 | ) |
| Balance      at end of year                     |                                                 | $ | 90 |   |   | $ | 183 |   |   | $ | 200 |   |

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