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Exhibit 10.13

                                 WMS GAMING INC.

                                LICENSE AGREEMENT

     THIS LICENSE AGREEMENT ("Agreement") is made as of the 15th day of
December, 1999, by and between WMS GAMING INC., a Delaware corporation with
offices at 3401 N. California Avenue, Chicago, IL 60618 ("Licensor") and
MULTIMEDIA GAMES, INC., a Texas corporation with offices at 8900 Shoal Creek
Blvd., Suite 300, Austin, TX 78755. ("Licensee").

                              W I T N E S S E T H:

     WHEREAS, Licensor owns or controls all the rights in Licensor's gaming
device trademarks and logos associated therewith and audio-visual works,
including without limitation sounds, music, graphics, characters and game play,
embodied therein, all as more specifically described on Exhibit A and Exhibit B
hereto; and

     WHEREAS, Licensee is engaged in the business of manufacturing, distributing
and selling gaming devices (herein such articles embodying and utilizing the
Licensed Property (as defined below) shall be referred to as the ("Licensed
Products"); and

     WHEREAS, Licensee desires to use Licensor's gaming device trademarks and
logos associated therewith and audio-visual works, including sounds, music,
characters and game play, embodied therein as specifically set forth on
Schedules A and B attached hereto (the "Licensed Property") in connection with
the lawful manufacture, distribution and sale of the Licensed Products at tribal
casinos within the State of Washington, located on "Indian lands," as defined in
Title 25, Section 2703(4) of the United States Code, and operating under
tribal/state compacts (or other arrangement) with the State of Washington;

     NOW THEREFORE, the parties hereto agree as follows:

1.   GRANT OF LICENSE:
     -----------------

     1.01 Licensor hereby grants and Licensee hereby accepts, for the term of
this Agreement and subject to the terms hereinafter set forth, the limited
exclusive license without the right to sublicense, to utilize the Licensed
Property to manufacture, market, distribute and sell the Licensed Products
solely to Indian tribes on Indian lands in the Territory (as defined below)

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only through direct sales. In the event Licensor desires to offer the Licensed
Property on a lease or revenue participation basis, Licensee shall first contact
Licensor and receive written authority to offer the Licensed Property on a lease
or revenue participation basis. It is understood that this license does not
include any rights to subsequent versions of the Licensed Property and that
Licensee is acquiring rights only to the Licensed Products and that no ancillary
rights, or rights to any other medium of commercial exploitation of the Licensed
Property.

     1.02 Notwithstanding any other terms hereof to the contrary, the
obligations of Licensor and Licensee hereunder are subject to Licensor obtaining
all gaming licenses, permits and approvals necessary for Licensor to consummate
the transactions contemplated hereunder (the "Licensor Approvals"). In no event
shall Licensee market, distribute, lease, sell or place into operation any
Licensed Product, and in no event shall Licensee be required to meet the
guaranteed minimum requirements of Section 5 below, until all Licensor Approvals
have been obtained. In the event all Licensor Approvals are not obtained by June
1, 2000, or in the event the Washington State Gambling Commission ("the
Commission") does not render its approval of this Agreement by such date, either
party may elect to terminate this Agreement, in which event Licensee shall
return all of the Licensed Property to Licensor and shall terminate any and all
use of the Licensed Property. Pending receipt of the Licensor Approvals or until
such time as the Commission shall otherwise approve the receipt of such funds by
Licensor, the Advance (as hereafter defined) shall be held in an interest
bearing escrow account for the benefit of Licensor. Such funds shall be returned
to Licensee only in the event of a termination pursuant to this Section 1.02.

2.   TERRITORY:
     ----------

     The Licensee shall be entitled to market, distribute, sell and maintain the
Licensed Products only throughout the state of Washington (the "Territory") to
tribal casinos (the "Tribal Casinos") located on Indian land, and operating
under tribal/state compacts (or other arrangement) with the State of Washington.

3.   TERM:
     -----

     The license granted hereunder shall become effective on November 1, 1999,
and, unless sooner terminated in accordance with the terms and conditions
hereof, shall expire December 31, 2001 (the "Term"); provided, however, that for
so long as Licensee is not in breach of this Agreement, the license hereunder
shall continue on a non-exclusive basis after the Term for as

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long as Licensee or the Tribal Casinos are utilizing the Licensed Products.

4.   CONSIDERATION:
     --------------

     4.01 Licensee shall pay Licensor the sum of $100,000 as a non-refundable
advance against License fees payable to Licensor under this Agreement (the
"Advance"). The Advance shall be payable upon execution of this Agreement and
shall be applied on a prorated basis toward the license fee for the first 250
Licensed Products sold by Licensee.

     4.02 Licensee shall pay to Licensor a License fee of $2,500.00 per unit for
each unit of the Licensed Products invoiced, distributed, placed for trial or
sold by Licensee ("License Fees"). License Fees shall be due and payable to
Licensor on all Licensed Products distributed by Licensee, even if not billed or
if not billed at regular price, such as, but not limited to, introductory offers
or trials; provided, however, that no License Fees shall be payable on a
reasonable number of Licensed Products (not to exceed four (4) units of a
particular Licensed Product) furnished for free for promotional purposes only.
Licensee is not permitted to sell or distribute Licensed Products through
sub-licensees or affiliates without the prior written approval of Licensor.
Notwithstanding anything to the contrary in this Agreement, where Licensee
provides Licensed Products to a customer without charge or at a reduced price
for the purpose of "price protection" or another purpose relating to other
products of Licensee, such Licensed Products shall be deemed to have been sold
at the regular price and all License Fees due Licensor are to be paid by
Licensee.

5.   GUARANTEED MINIMUM:
     -------------------

     Licensee guarantees to Licensor a minimum purchase of one thousand 1,000
units of Licensed Products during the one year period commencing on the later to
occur of (i) the Licensor Approvals, and (ii) the date on which the Commission
issues its approval of this Agreement (the "First Year"), and Licensee shall
purchase a minimum of two hundred fifty (250) units of Licensed Products during
each quarter of the First Year. In addition, Licensee shall use commercially
reasonable efforts to purchase an additional one thousand (1,000) units of
Licensed Products during the one year period following the First Year (the
"Second Year"), at a rate of 250 units of Licensed Property each quarter;
provided, that, if Licensor sells less than 1,000 units of Licensed Property
during the Second Year, Licensee shall pay Licensor the amount of $500 times the
difference between 1000 units and the amount actually sold by

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Licensee, with such payment being due within fifteen (15) days after the end of
the Second Year. To the extent that Licensee sells over 1,000 units of the
Licensed Property prior to the end of the Second Year, Licensee shall have the
right to apply such excess units of Licensed Property to its obligations for the
Second Year.

6.   ACCOUNTING:
     -----------

     6.01 Licensee agrees to forward to Licensor, within thirty (30) days after
the end of each calendar quarter during the Term (the "License Period")
commencing with the first calendar quarter during which any unit of the Licensed
Products is sold or distributed, a report of the number of units of the Licensed
Products sold or distributed by Licensee within such License Period, the License
Fee due therefor, all information necessary to calculate such License Fee, the
number of units returned and any License Fees credit claimed for units so
returned. Licensee agrees that accompanying each such report shall be payment of
the License Fees due to Licensor, if any, earned by Licensor during such License
Period, less the portion of the Advance paid to Licensor to date and not yet
recouped by Licensee. Such reports shall be required to be submitted with
respect to sales and distributions of the Licensed Products whether or not any
amounts are due under the terms hereof. All payments under this Agreement shall
be made in U.S. dollars. Unless otherwise agreed in writing between the parties
hereto, payment shall be made by wire transfer of immediately available funds or
corporate check to Licensor payable (30) days after shipment from Licensee's
factory.

     6.02 Licensee agrees to keep accurate books of account and records covering
all sales and License Fees due under this Agreement and to permit Licensor at
its own expense to inspect and copy such books of account and records during
reasonable business hours (upon prior reasonable written notice) for the sole
purpose of verifying the reports to be provided hereunder. Licensor shall keep
any information obtained from any such inspection in confidence and shall
require that its accountants do so as well, provided that Licensor shall not be
liable for disclosure of any confidential information if the same is disclosed
to any employee, officer, or other individuals of Licensor's affiliates or
licensors; is disclosed to Licensor's attorneys or other advisors; is disclosed
pursuant to a judicial order; was or becomes generally known to the industry
through no fault of Licensor; was known to Licensor at the time of disclosure by
Licensee; is disclosed inadvertently despite the exercise of the same degree of
care as a reasonable person takes to preserve and safeguard their own
proprietary information; is disclosed

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with prior approval; becomes known to Licensor from a source other than
Licensee; or is disclosed in the exercise of Licensor's rights under this
Agreement. In the event that any audit by Licensor's accountants reveals that
Licensee has underpaid License Fees by five percent (5%) or more with respect to
any License Period which is the subject of such audit, Licensee agrees that it
shall reimburse Licensor for the reasonable costs for any such audit. All books
of accounts and records relating to each report to be provided under this
Agreement shall be retained by Licensee for at least two (2) years after the
termination or expiration of this Agreement and Licensor's audit rights shall
survive termination or expiration of this Agreement. Licensee shall pay to
Licensor the amount of any deficiency discovered by Licensor, with interest from
the date such deficiency was originally due, within fifteen days after receipt
of notice thereof from Licensor. Licensee agrees that Licensor may delegate its
audit right to Licensor's licensors or affiliates. Licensee shall not interfere
with Licensor's auditors in the performance of their duties.

     6.03 If Licensee fails to timely submit accurate reports and License Fees,
Licensee shall pay interest on overdue amounts at the monthly rate of one and
one-half percent (1.5%) or the highest rate permitted by law, whichever is
lower.

     6.04 Licensee shall be solely responsible for and shall pay any and all
taxes, levies, duties or other fees or charges which may be imposed by any
governmental jurisdiction including tribal, as a result of the parties'
performance under this Agreement; provided, however, that Licensor shall be
solely responsible for taxes on Licensor's income and fees and other impositions
relating to Licensor's licensing in any jurisdiction which may be required due
to this Agreement, including without limitation background investigations. If
Licensee is required by a governmental authority to pay withholding taxes on any
License Fees payable to Licensor, Licensee will promptly provide to Licensor
copies of documents evidencing the withholding and payment of such taxes.
Licensee will cooperate in all reasonable ways with Licensor to minimize such
withholding taxes.

7. QUALITY OF LICENSED PRODUCTS:
   -----------------------------

     7.01 The Licensed Products and any packaging therefor which contains any
Licensed Property as manufactured, advertised, sold, distributed or otherwise
disposed of by Licensee under this Agreement, shall be of a high quality.
Licensor shall have the right to determine in its reasonable discretion whether
the Licensed Products and such packaging meets Licensor's high

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standards of merchantability. Licensee agrees to furnish Licensor free of cost
for Licensor's written approval as to quality and style, up to six (6)
stand-alone, demonstration player stations of each of the Licensed Products
capable of running a demonstration of the applicable game(s), but not able to
play any applicable game(s), and all packaging therefor, before the manufacture,
sale or distribution (whichever first occurs) of such Licensed Products and the
Licensed Products shall not be sold or distributed by Licensee without such
written approval. Such demonstration player stations shall be submitted for
approval in final form (including all applicable artwork and sound). Licensor
may retain such demonstration player stations at its option. In addition,
Licensee shall furnish up to six (6) free demonstration player stations for each
Licensed Product to Licensor at the time of commencement of sale of each of the
Licensed Products. License Fees shall not be paid by Licensee on such
demonstration player stations. Licensee acknowledges that Licensor's approval
may be conditioned upon the approval of Licensor's licensors or the approval of
governmental regulatory authorities having jurisdiction over Licensor. Licensee
shall include such notices, waivers or other similar documents as reasonably
requested by Licensor with the packaging of the Licensed Products.

     7.02 If Licensor shall disapprove of any item submitted by Licensee for
approval hereunder, Licensor shall furnish at the time notice of disapproval is
given to Licensee an explanation of the reason(s) for such disapproval and
recommendations for suggested changes and Licensee shall resubmit such item
after changes have been made for Licensor's approval.

     7.03 In the event that the quality of any Licensed Products or packaging
approved by Licensor shall become less than that approved by Licensor and
Licensee shall fail to raise the quality to the approved level within thirty
(30) days after receiving written notice from Licensor, the license granted
under this Agreement shall automatically terminate and shall remain terminated
until Licensor shall subsequently renew its approval of the Licensed Product and
packaging.

     7.04 If approval is not received by Licensee within fifteen (15) business
days after Licensor's receipt of the item submitted for approval, Licensor's
approval shall be deemed to have been granted. Subsequent to final approval,
Licensor may require Licensee to send a production sample (but in any event not
more than six (6)) to Licensor at the time quarterly License accounting reports
are sent in order to ensure quality control. Should Licensor require additional
samples, up to a maximum of 10, for any reason other than resale or any other

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commercial exploitation by Licensor, Licensee shall be required to sell the
required units of each Licensed Products to Licensor at its cost; provided that
such sales are legal in the applicable jurisdiction(s). License Fees shall not
be due on any samples submitted for approval or purchased by Licensor at
Licensee's cost.

8.   TRADEMARK AND COPYRIGHT:
     ------------------------

     8.01 "Notice" as used in this paragraph shall mean the notice provided to
Licensee on applicable artwork accompanying the Licensed Property. Licensee
shall also use the (R) and/or the (TM) , as applicable, with the marks on
attached Schedules A and B, and the (R) or (TM) with the other trademarks of
Licensor and its licensors and affiliates, as Licensor may specify. Licensor
shall have the right to change the Notice by written notice to Licensee.
Licensee shall also prominently display Licensor's logo on the screen
representation of the Licensed Product and on all materials relating to the
Licensed Product, including manuals and promotional materials.

     8.02 Licensee shall print the Notice on each label, advertisement and
promotional release concerning any Licensed Product, all in accordance with
written instructions from Licensor. The Notice shall be displayed on the title
screen of the Licensed Products and in manual packaged with the Licensed
Product. A copy of the final artwork of the form of such Notice to be used by
Licensee shall be submitted to Licensor for its written approval. Licensee
agrees to execute and deliver to Licensor, in such form as Licensor may
reasonably request, all instruments necessary to effectuate trademark and
copyright protection or to record Licensee as a registered user of any
trademarks included in the Licensed Property or to cancel such registration upon
the termination of the license granted hereunder and if Licensee fails to
execute such instruments, Licensee hereby appoints Licensor as Licensee's
attorney-in-fact to do so on Licensee's behalf. Licensee shall also furnish
Licensor for Licensor's written approval and prior to use, final samples of all
advertising or promotional or other materials (including, without limitation,
non-print material) relating to the Licensed Products, which shall bear the
Notice. Such material shall be submitted for approval in final form (including
color), with non-print advertising material being submitted in script or tape
form. Any changes to such materials shall be made within thirty (30) days from
Licensor's request, and such materials shall then be re-submitted for approval.

     8.03 Subject to the terms of this Agreement, Licensee acknowledges and
agrees that: All copyrights, trademarks and service marks and rights to same
listed on Schedules A and B

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attached hereto in the name of and/or owned by Licensor or its licensors or
affiliates shall be and remain the sole and complete property of Licensor or its
licensors or affiliates; that all such copyrights, trademarks and service marks
and rights to same and rights in the name of or owned by any copyright
proprietor other than Licensor, its licensors and affiliates or Licensee shall
be and remain the sole and complete property of such copyright proprietor; that
all copyrights, trademarks and service marks which, and/or the right to use
which, arise out of the license hereby granted to use the Licensed Property
shall be and remain the sole and complete property of Licensor and its licensors
and affiliates; that Licensee shall not at any time acquire or claim any right,
title or interest of any nature whatsoever in any such copyright, trademark or
service mark by virtue of this Agreement or of Licensee's uses thereof in
connection with the Licensed Products; and that any right, title or interest in
or relating to any such copyright, trademark or service mark, which comes into
existence as a result of, or during the term of, the exercise by Licensee of any
right granted to it hereunder shall immediately vest in Licensor and/or its
licensors and/or affiliates, as the case may be. Under no circumstances may
Licensee apply for registration of any such trademark, copyright or service
mark.

     8.04 Licensee agrees to assist Licensor and its affiliates and licensors,
at their expense and to the extent necessary, to protect any of their rights to
the Licensed Property, Licensed Products and related materials, and Confidential
Information (as defined below). Licensee shall notify Licensor in writing of any
infringements or imitations by others of the Licensed Property on articles
similar to those covered in this Agreement which may come to the Licensee's
attention, or any other unauthorized use of the Licensed Property, Licensed
Products or related materials or Confidential Information or any portion
thereof. Licensor or its licensors or affiliates shall have the right to
commence action to enforce their proprietary rights and prosecute any such
infringements, and Licensee agrees to fully cooperate, at Licensor's expense, in
any such action. However, Licensee shall not incur any such expense reimbursable
by Licensor without Licensor's prior express written approval and all recoveries
resulting from any such action shall belong solely to Licensor and its licensors
and affiliates. In the event Licensor declines to pursue any such action,
Licensee may, with Licensor's written permission, institute such an action, and
Licensor, at Licensee's expense, shall cooperate in such action instituted by
Licensee and all recoveries resulting from any such action shall belong solely
to Licensee.

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     8.05 Licensee recognizes the great value of the good will associated with
the Licensed Property and the identification of the Licensed Products with the
Licensed Property, and acknowledges that the Licensed Property and all rights
therein and good will pertaining thereto belong exclusively to Licensor and its
licensors and affiliates, and have a secondary meaning in the mind of the
public. Licensee acknowledges and agrees that the use of the Licensed Property
shall accrue exclusively to the benefit of Licensor and its licensors and
affiliates, and all ownership, copyrights, trademarks and other rights in the
Licensed Property and in all artwork, packaging, copy, literary text and
advertising and promotional material of any sort incorporating or based on the
Licensed Property, including all such material developed by Licensee, shall be
in Licensor's name or as otherwise directed by Licensor.

9.   MATERIALS:
     ----------

     9.01 Notwithstanding anything contained in this Agreement to the contrary,
all artwork, designs, copy, literary text, advertising and promotional material
(including, without limitation, translations of copy or text of the Licensed
Property and other localizations of the Licensed Property made by Licensee), or
other works of authorship incorporating or based on the Licensed Property which
are designed, developed and/or created by or on behalf of Licensee (or any of
its contractors), shall be and remain Licensor's or Licensor's designee's sole
and exclusive property, inclusive of all copyrights and right to copyright
therein and thereto for the life of the copyright therein; provided, that during
the term of this Agreement, Licensee shall have the right, license and privilege
to use all such above described materials in connection with its exploitation,
sale and distribution of the Licensed Products within the Territory; provided,
however, that nothing in this sentence shall be construed to abridge Licensor's
rights to further license the Licensed Property outside the Territory or to
license within the Territory subsequent to the Term. Upon any expiration or
termination of this Agreement, Licensee shall immediately deliver to Licensor
all copies possessed by Licensee of the artwork, designs, packaging, copy,
literary text, advertising and promotional material, or other works of
authorship incorporating or based on the Licensed Property. During the Term and
thereafter, Licensee shall execute and deliver such additional documents and
take such other actions as Licensor or its designee may reasonably request to
accomplish the purposes of this Paragraph 9.01, including without limitation,
evidencing and vesting in Licensor or its designee the ownership of all rights
in all

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artwork, designs, packaging, copy, literary text, advertising and promotional
material and other works of authorship incorporating or based on the Licensed
Property.

     9.02 Licensor shall make available to Licensee artwork relating to the
Licensed Property which Licensor possesses for Licensee's use in connection with
the exploitation of the Licensed Property.

10.  MANUFACTURE, MARKETING AND DISTRIBUTION:
     ----------------------------------------

     10.01 The first shipment of units of each Licensed Product by Licensee in
the Territory shall occur no later than sixty (60) days after the later of (i)
Licensor's approval under Section 7 hereof or (ii) the approval of the State of
Washington and the approval of the first tribal authority. If such shipment has
not occurred within this time frame, Licensor shall have the immediate right to
terminate this Agreement.

     10.02 Licensee agrees that it will diligently and continuously manufacture,
distribute and sell the Licensed Products and that it will make and maintain
adequate arrangements for the distribution of the Licensed Products. Licensee
shall arrange for the manufacturing, marketing and distribution of the Licensed
Products using its best efforts to effect distribution as widely as possible
throughout the Territory.

     10.03 Licensee agrees that it will sell and distribute the Licensed
Products at a competitive price, and only to tribal casino operators within the
Territory having compacts (or other arrangements) with the State of Washington.
In the event any sale is made at a special price to any of Licensee's
subsidiaries or to any other person, firm or corporation related in any manner
to Licensee or its officers, directors or major stockholders, there shall be
full License Fees paid on such sales.

     10.04 Licensee shall develop data contained in the Licensed Product (to the
extent it is permitted to do so), all artwork, designs, packaging, copy,
literary text, other computer software, and advertising and promotional material
of any sort incorporating or based on the Licensed Property using its own
employees, not independent contractors, sublicensees or affiliates, unless
Licensee has received the prior written approval of Licensor to use such
independent contractors, sublicensees or affiliates. If Licensee wishes to use
sublicensees, affiliates or contractors to do so, Licensee shall first obtain
the written consent of Licensor, which consent may be conditioned upon such
third party complying with Licensor's compliance program and executing an
agreement acceptable to Licensor protecting the rights and interests of Licensor
and its affiliates

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and licensors under this Agreement. Manufacture of the Licensed Products,
packaging, advertising and promotional material shall be at Licensee's sole
expense.

11.  REPRESENTATIONS AND WARRANTIES:
     -------------------------------

     11.01 Licensee hereby represents and warrants that it is free to enter into
and fully perform this Agreement; that Licensee is a corporation validly
existing under the laws of the State of Texas and qualified to conduct business
in the State of Washington; that Licensee has all licenses and permits required
to allow Licensee to sell the Licensed products in the Territory; that all
ideas, creations, materials and intellectual property furnished by Licensee in
connection with the Licensed Products will either be Licensed Property or
Licensee's own and original creation (except for matters in the public domain)
or used under a valid license agreement between and that any intellectual
property of Licensee used by Licensee in connection with the Licensed Property
(other than the Licensed Property) will not infringe upon or violate any rights
of any third party of any nature whatsoever or any applicable federal, state or
local law or regulation; and that it will be solely responsible for and shall
pay all sums due any other parties entitled to receive compensation in
connection with the same.

     11.02 Licensor hereby represents and warrants that Licensor has the full
and exclusive right and power to enter and fully perform this Agreement; that
Licensor is a corporation validly existing under the laws of the State of
Delaware; that Licensor is the owner of the Licensed Property and has the full
and exclusive power to grant the rights and licenses to the Licensed Property as
described herein; that Licensor has not heretofore granted such rights to the
Licensed Property to any other person or entity for use in the Territory; that
Licensor is free to enter into this Agreement; that Licensor will be solely
responsible for and shall pay all sums due any other parties entitled to receive
any compensation in connection with the Licensed Property; and that the Licensed
Property used pursuant to the license granted herein will not infringe upon or
violate any rights of any third party of any nature whatsoever or any applicable
federal, state or local law or regulation; and that it will be solely
responsible for and shall pay all sums due any other parties entitled to receive
compensation in connection with the same.

12.  INDEMNIFICATION:
     ---------------

     12.01 Each party hereto agrees to indemnify and hold the other (including
officers, directors, agents and employees of such party or its subsidiaries,
affiliates and licensors) harmless against any loss, damage, expense or cost
(including reasonable attorneys' fees) arising

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out of any claim, demand, suit or judgment resulting from any breach of any
warranty or representation set forth in Paragraph 11 above. Each party shall
promptly inform the other in writing of any such claim, demand, suit or
judgment.

     12.02 Licensee additionally agrees to indemnify and hold Licensor
(including officers, directors, agents and employees of such party or its
subsidiaries, affiliates and licensors) harmless from any and all claims,
damages, liabilities, costs and expenses, including reasonable attorneys' fees,
arising out of Licensee's manufacture, marketing, advertising, promotion, use
and sale of the Licensed Products, including claims of product liability and the
unauthorized use by Licensee of any trademark, copyright, patent or other
proprietary rights of others; provided, however, that Licensor shall remain
liable for any infringement on the rights of third parties arising from the use
of the Licensed Property, which shall be included in Licensor's indemnification
under Paragraph 12.01 above. In the event that Licensee shall be obligated to
Licensor pursuant to the terms hereof or in the event that a suit, action,
investigation, claim or proceeding is begun, made or instituted as a result of
which Licensee may become obligated to Licensor hereunder, Licensor shall give
prompt written notice to Licensee of the occurrence of such event.

     12.03 In connection with any such claim, demand or suit referred to above,
the party so indemnifying (the "Indemnitor") agrees to defend, contest or
otherwise protect the indemnified party (the "Indemnitee") against any such
suit, action, investigation, claim or proceeding at the Indemnitor's own cost
and expense. The Indemnitee shall have the right, but not the obligation to
participate, at its own expense, in the defense thereof by counsel of its own
choice. In the event that the Indemnitor fails timely to defend, contest or
otherwise protect against any such suit, action, investigation, claim or
proceeding, the Indemnitee shall have the right upon twenty (20) days' written
notice to the Indemnitor to defend, contest or otherwise protect against the
same and make any compromise or settlement thereof and recover the entire cost
thereof from the Indemnitor, including without limitation, reasonable attorneys'
fees, disbursements and all reasonable amounts applied as a result of such suit,
action, investigation, claim or proceeding or compromise or settlement thereof,
provided, Licensor shall control all infringement litigation brought against
third parties involving or affecting the Licensed Property. The obligations
hereunder shall survive the termination or expiration of this Agreement.

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     12.04 Licensee agrees that it will obtain and maintain during the Term at
its own expense, general liability insurance (including coverage for product
liability) from a recognized and qualified insurance company naming Licensor as
additional insured in the amount of at least $3 million per occurrence against
any claims, suits, losses or damages, including attorneys' fees, arising out of
any alleged defects in the Licensed Products or packaging or the manufacture,
marketing, distribution, sale or use of the Licensed Products. Such policy shall
be non-cancelable except after thirty (30) days' prior written notice to
Licensor. As proof of such insurance, a fully paid certificate of insurance will
be submitted to Licensor by Licensee for Licensor's prior written approval
before any Licensed Product is distributed or sold, and at the latest within
thirty (30) days after the date of this Agreement.

     12.05 Licensor, its affiliates and licensors shall not be liable for any
incidental, consequential, punitive or indirect damages arising out of or in
connection with this Agreement or other damages, losses or claims in any way
incurred by Licensee in manufacturing, marketing, advertising and selling the
Licensed Product, except as provided in Paragraph 12.02. Licensor, its
affiliates and licensors shall not be liable for any damages, loss or claim
relating to the functioning of the Licensed Property or Licensed Products,
including, without limitation, consequential, special, punitive or actual
damages.

13.  RESERVATION OF LICENSOR'S RIGHTS:
     ---------------------------------

     13.01 Licensor shall not be prevented from granting to third parties the
right to use the Licensed Property in any manner whatsoever except that Licensor
shall grant no other licenses effective during the term of this Agreement for
the use of the Licensed Property in connection with the sale or exploitation of
any Licensed Products in the Territory. Licensee shall have the exclusive right
to use the Licensed Products in the Territory.

14.  EVENTS OF DEFAULT AND TERMINATION:
     ----------------------------------

     14.01 Licensee shall be deemed to be in default of this Agreement, and
Licensor shall have the right to immediately terminate this Agreement, in the
event Licensee fails after fifteen (15) days' written notice to Licensee to make
any payment due and owing under the terms of this Agreement, furnish any
statement in accordance herewith, or completely comply with any other of
Licensee's material obligations hereunder.

     14.02 If during the Term of this Agreement Licensee shall be unable to pay
its liabilities when due, or shall make any assignment for the benefit of
creditors, or shall file any petition

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under any federal or state bankruptcy statute, or be adjudicated a bankrupt or
insolvent, or if any receiver is appointed for its business or property, or if
any trustee in bankruptcy shall be appointed under the laws of the United States
or any state, and in the case of an involuntary filing only, such impediment is
not removed within thirty (30) days from the inception of same, Licensor may
terminate this Agreement upon written notice.

     14.03 If during the Term of this Agreement any of Licensee's gaming
licenses is suspended, revoked or otherwise impacted by any gaming regulatory
agency, Licensor shall have the right to terminate this Agreement.

     14.04 Licensor shall be deemed to be in default of this Agreement, and
Licensee shall have the right to immediately terminate this Agreement, in the
event Licensor fails, after fifteen (15) days' written notice to Licensee, to
completely comply with any of Licensor's material obligations hereunder. If,
during the Term of this Agreement, Licensor shall be unable to pay its
liabilities when due, or shall make any assignment for the benefit of creditors,
or shall file any petition under any federal or state bankruptcy statute, or be
adjudicated a bankrupt or insolvent, or if any receiver is appointed for its
business or property, or if any trustee in bankruptcy shall be appointed under
the laws of the United States or any state, and in the case of an involuntary
filing only, such impediment is not removed within thirty (30) days from the
inception of same, Licensor may terminate this Agreement upon written notice.
Further, if during the Term of this Agreement any of Licensor's gaming licenses
are suspended, revoked or otherwise impacted by any gaming regulatory agency, or
if Licensor is determined by a court of competent jurisdiction not be the owner
of any of the Licensed Property, Licensee shall have the right to terminate this
Agreement.

15.  EXPIRATION OR TERMINATION OF AGREEMENT:
     ---------------------------------------

     15.01 Upon expiration or termination of this Agreement, all rights granted
to Licensee herein shall forthwith revert to Licensor; provided, however, that
for so long as Licensee is not in default, Licensee and the Tribal Casinos shall
have the right to continue to use and maintain the Licensed Products, along with
the associated Licensed Property, already in operation, along with the following
consequences:

     (a)  all License Fees and guaranteed minimums shall be immediately due and
          payable;

     (b)  Licensor shall thereafter be free to license others to use the
          Licensed Property in connection with the manufacture, advertisement,
          distribution and sale of gaming

                                       14

<PAGE>

     devices, including devices identical or similar to the Licensed Products in
     the Territory;

(c)  Licensee shall (i) within thirty (15) days following termination or
     expiration, deliver a preliminary accounting and inventory to Licensor of
     all Licensed Products on hand and all Licensed Products sold up to the date
     of termination or expiration; (ii) within forty-five (45) days following
     such termination or expiration, deliver a final accounting and inventory to
     Licensor of all Licensed Products on hand and all Licensed Products sold up
     to the date of termination or expiration; (iii) make payment to Licensor of
     all monies then outstanding under this Agreement within fifteen (15) days
     following termination or expiration; (iv) certify within forty-five (45)
     days following termination or expiration full compliance with this
     Agreement, including but not limited to the provisions of this paragraph;
     (v) allow Licensor and its agents and representatives or its licensors to
     conduct a physical inspection and inventory of the Licensed Products and
     reasonably cooperate with their efforts and (vi) at Licensor's election,
     deliver to Licensor all unsold copies of the Licensed Products in inventory
     or destroy the remaining inventory and certify as to the remaining
     inventory's destruction (subject to subparagraph (d) below);

(d)  in the event of expiration or termination of this Agreement, other than a
     termination by Licensor as a result of a material breach of this Agreement
     by Licensee, subject to the provisions of Paragraph 4 hereof, Licensee may
     continue to sell for a period of ninety (90) days (subject to termination
     by Licensor as a result of a material breach of this Agreement by Licensee)
     after the effective date of termination ("Sell-Off Rights") all approved
     copies of the units of the Licensed Products produced prior thereto. Within
     fifteen (15) days following the expiration or termination of the Sell-Off
     Rights, Licensee shall (i) deliver a final accounting to Licensor
     containing the information specified for periodic statements; (ii) make
     payment of all monies due hereunder to Licensor; and (iii) deliver the
     remaining inventory to Licensor or, at Licensor's election, destroy the
     remaining inventory and certify as to the remaining inventory's
     destruction.

In the event this Agreement expires or is terminated as a result of a breach of
this

                                       15

<PAGE>

Agreement by Licensee or otherwise at the expiration of the Sell-Off Rights, all
of Licensor's and its affiliates' and licensors' materials, including, without
limitation, the Confidential Information, shall be returned to Licensor by
Licensee and no further disposition or use of the Licensed Products may be made
without the prior written approval of Licensor.

     15.02 Licensee acknowledges that its failure (except with respect to its
Sell-Off Rights) to cease the manufacture, sale or distribution of the Licensed
Products immediately upon the termination or expiration of this Agreement will
result in immediate and irreparable injury to Licensor, its licensors and
affiliates and any subsequent distributor appointed by any of them. Licensee
acknowledges and admits that there is no adequate remedy at law for such failure
and agrees that in the event of such failure Licensor and its licensors shall be
entitled to equitable relief by way of temporary or permanent injunctions
without the necessity of posting bond or other security and any such further
relief as any court with jurisdiction may deem just and proper.

16.  NOTICES:
     --------

     Any notice, consent, approval, request, waiver or statement to be given,
made or provided for under this Agreement shall be in writing and deemed to have
been duly given (i) by its delivery personally or by express mail; (ii) by its
being sent by telefax or telex (confirmed in writing); or (iii) five days after
its being mailed, registered or certified, return receipt requested in a U.S.
Post Office addressed to Licensor's or Licensee's address as set forth on page
one hereof (to the attention of President), or to such other address as either
party may designate by notice given as aforesaid. A copy of any notice sent to
Licensor shall also be sent to Vice President and General Counsel, WMS
Industries Inc., 3401 North California Avenue, Chicago, Illinois 60618.

17.  CONFIDENTIAL INFORMATION/NON-SOLICITATION:
     ------------------------------------------

     Licensee shall keep in confidence, not disclose to any third party and not
use for any purpose except its performance under this Agreement, without the
written permission of Licensor, the terms of this Agreement and the information
of Licensor, its affiliates or licensors made known to Licensee under this
Agreement (collectively "Confidential Information"). The foregoing requirement
of confidentiality shall not apply to information that is (a) in the public
domain through no wrongful act of Licensee, (b) disclosed to Licensee by a third
party which is under no obligation of confidentiality with respect to such
information and which does not place

                                       16

<PAGE>

Licensee under such an obligation, or (c) required to be disclosed by applicable
rules and regulations of government agencies or judicial bodies. This obligation
of confidentiality: (i) shall survive termination of this Agreement and (ii)
shall extend to any subcontractor of Licensee and Licensee agrees to obtain from
each such subcontractor a written agreement to abide by the foregoing
confidentiality requirements. Each party agrees not to make any public
statements or to issue any press release regarding this Agreement without the
prior consent of the other party.

18.  SPECIFIC UNDERTAKINGS:
     ----------------------

     18.01 During the term of this Agreement and thereafter, Licensee:

     (a)  will not challenge the ownership or rights of Licensor or its
          licensors or affiliates in and to the Licensed Property, Licensed
          Products and related materials or Confidential Information, or any
          copyright, patent or trademark pertaining thereto developed by or for
          Licensor or its licensors or affiliates, nor attack the validity of
          the license granted hereunder or participate in any challenge thereto;

     (b)  will manufacture, market, sell and distribute Licensed Products of
          merchantable quality and which are safe for public use in an ethical
          and lawful manner and in compliance with all applicable treaties,
          laws, ordinances and governmental rules and regulations and in
          accordance with the terms and intent of this Agreement, and will
          comply with any regulatory agencies which have jurisdiction over
          Licensee or the Licensed Products including tribal;

     (c)  will not create any expenses chargeable to Licensor without Licensor's
          prior written approval, and will not harm, misuse or bring into
          disrepute the reputation of Licensor, its affiliates and licensors;

     (d)  will not except as set forth in this Agreement, either directly or
          indirectly, use or display or authorize others, with the exception of
          the Tribal Casinos, to use or display the Licensed Property in
          connection with any advertising, assembly, manufacture, distribution,
          use, sale or lease of any goods, other than in connection with the
          manufacture and sale of the Licensed Products under this Agreement;
          and

     (e)  shall be responsible for obtaining any and all approvals required to
          offer the Licensed Property for sale within the Territory. This
          requirement specifically

                                       1

<PAGE>

          refers to but is not limited to obtaining all required approvals from
          the State of Washington Gambling Control Board or its predecessor.

19.  COMPLIANCE WITH LAWS:
     ---------------------

     (a)  Licensee intends that the Licensed Property hereunder are to be
          operated by tribal casinos under federal law and tribal/state compacts
          (or other arrangements) with the State of Washington and any
          applicable tribal regulations and in compliance with all other
          governmental or municipal laws governing this Agreement. Licensee and
          all purchasers of Licensed Property from Licensee are responsible for
          the operation of each game containing the Licensed Property in
          accordance with all applicable laws and regulations. Licensee's
          factory settings for games may require adjustment in order to comply
          within application laws and regulations. Licensor agrees that it is
          the responsibility of Licensee to determine whether adjustments are
          necessary and, if such adjustments are necessary, to make such
          adjustments prior to operating the game.

     (b)  Licensee will be solely responsible for obtaining any business
          permits, authorizations or similar licenses required by any
          governmental authority or otherwise and will be solely responsible for
          compliance with all laws, rules and regulations and other governmental
          requirements applicable to the use, operation or sale of games within
          the Territory and all shipment instructions made by the Licensee shall
          be in compliance with all rules and regulations of the governments
          within the Territory, or any political subdivision thereof or other
          governmental agency, or any commission, board, bureau or
          instrumentality and Licensed Property will only be warehoused, stored,
          sold and/or operated by Licensee in jurisdictions where legal to do
          so.

     (c)  Licensee shall promptly provide Licensor with all information
          reasonably requested by the Compliance Committee of Licensor's
          ultimate parent corporation, WMS Industries Inc. ("WMS"), with respect
          to Licensee's (including Licensee's officers', directors' and
          controlling shareholders') financial condition, litigation,
          indictments, criminal proceedings, and the like, in which they are or
          may have been involved, if any, in order for the WMS Compliance
          Committee to

                                       18

<PAGE>

          determine that no such information would disclose any fact which would
          jeopardize, in any manner, any gaming licenses or permits held by WMS
          or its affiliates with any gaming commission, board or similar
          regulatory agency. In the event that Licensee shall fail to so provide
          all such requested information, or if such information with respect to
          Licensee as provided by Licensee or as obtained as a result of WMS'
          own investigation, discloses facts concerning Licensee which could, in
          the sole opinion of the WMS Compliance Committee, jeopardize the
          obtaining of such gaming licenses or permits or the maintaining of
          such gaming licenses or permits with any gaming commission, board, or
          similar regulatory agency; then, Licensor shall have the right upon
          ten (10) days written notice to Licensee to terminate this Agreement,
          in which case, it will have no further affirmative obligations to
          Licensee, other than to give Licensee reasonable access to information
          disclosed. Licensee shall remain liable to Licensor and its affiliates
          for all obligations incurred prior to such termination, except for the
          Licensee's obligations under Section 5.

     (d)  Licensor shall promptly provide Licensee with all information
          reasonably requested by Licensee's Compliance Committee, with respect
          to Licensor's (including Licensor's officers', directors' and
          controlling shareholders') financial condition, litigation,
          indictments, criminal proceedings, and the like, in which they are or
          may have been involved, if any, in order for Licensee's Compliance
          Committee to determine that no such information would disclose any
          fact which would jeopardize, in any manner, any gaming licenses or
          permits held by Licensee or its subsidiaries and affiliates with any
          gaming commission, board or similar regulatory agency. In the event
          that Licensor shall fail to so provide all such requested information,
          or if such information with respect to Licensor as provided by
          Licensor or as obtained as a result of Licensee's own investigation,
          discloses facts concerning Licensor which could, in the sole opinion
          of Licensee's Compliance Committee, jeopardize the obtaining of such
          gaming licenses or permits or the maintaining of such gaming licenses
          or permits with any gaming commission, board, or similar regulatory
          agency; then, Licensee shall have the right upon ten (10) days written
          notice to Licensor to terminate this Agreement, in

                                       19

<PAGE>

          which case, it will have not further affirmative obligations to
          Licensor, other than to give Licensor reasonable access to information
          disclosed. Licensor shall remain liable to Licensee and its affiliates
          for all obligations incurred prior to such termination.

20.  SURVIVAL AT TERMINATION:
     ------------------------

     Unless otherwise provided herein, the expiration or termination of this
Agreement shall not affect one party's obligation to the other hereunder which
by the nature thereof are intended to survive any such expiration or
termination.

21.  MISCELLANEOUS:
     --------------

     21.01 Licensor shall have the right, at its election, to assign any of its
rights or obligations hereunder, in whole or in part, to any subsidiary,
affiliate, or related company, or to any person, firm or corporation owning or
acquiring a substantial portion of Licensor's stock or assets, and to the extent
of such assignment, Licensor shall thereafter be relieved of its obligations
hereunder. Licensee shall have no right to assign or sublicense any of its
rights or obligations hereunder without the written approval of Licensor.

     21.02 The entire understanding between the parties hereto relating to the
subject matter hereof is contained herein. This Agreement cannot be changed,
modified, amended or terminated except by an instrument in writing executed by
both Licensee and Licensor.

     21.03 No waiver, modification or cancellation of any term or condition of
this Agreement shall be effective unless executed in writing by the party
charged therewith. No written waiver shall excuse the performance of any act
other than those specifically referred to therein and no waiver shall be deemed
or construed to be a waiver of such terms or conditions for the future or any
subsequent breach thereof. Licensor and Licensee make no warranties to other
except those specifically expressed herein.

     21.04 This Agreement does not constitute and shall not be construed as
constituting a partnership or joint venture between Licensor and the Licensee
,and the Licensor and Licensee shall have no right to obligate or bind the other
party in any manner whatsoever, and nothing herein contained shall give or is
intended to give any rights of any kind to any third persons.

     21.05 This Agreement shall be governed by the laws of the State of Illinois
applicable to contracts made and to be wholly performed in the State of
Illinois.

                                       20

<PAGE>

     21.06 This Agreement shall not be deemed effective, final or binding upon
Licensor or Licensee until signed by each of them.

     21.07 If any provision of this Agreement is or becomes or is deemed
invalid, illegal or unenforceable under the applicable laws or regulations of
any jurisdiction, either such provision will be deemed amended to conform to
such laws or regulations without materially altering the intention of the
parties or it shall be stricken and the remainder of this Agreement shall remain
in full force and effect.

     21.08 In the event of litigation between the parties arising out of or
relating to this Agreement, the prevailing party will be entitled to recover
court or arbitration costs and reasonable fees of attorneys, accountants and
expert witnesses incurred by such a party in connection with the action.

     21.09 Each of the parties hereto consents to the exclusive jurisdiction and
venue of the state and federal courts of the State of Illinois, located in
Chicago, with respect to any matter relating to this Agreement, and each party
hereto consents to the personal jurisdiction of such courts and shall subject
itself to such personal jurisdiction. The parties agree that service of process
may be made upon them in any manner permitted by the rules of such courts and
the laws of the State of Illinois.

     IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the
day and year first above written.

     MULTIMEDIA GAMES, INC.              WMS GAMING INC.

     By:                                 By:
         --------------------------            -----------------------------

     Title:                              Its:
           ------------------------            -----------------------------

                                       21

<PAGE>

                                   Schedule A

2257723--Stroke of Luck                       2114790--Twice the Ice
-----------------------                       ----------------------
2254313--Something for Nothing                2072652--Night & Day
------------------------------                --------------------
2251935--Xfactor                              2072651--Jitterbug
----------------                              ------------------
2251931--Palace of Riches                     2072650--Big Money Board
-------------------------                     ------------------------
2245975--Mermaid's Gold                       2072649--Pirate's Thunder
-----------------------                       -------------------------
2241976--Multi-Pay Plus Bar                   2067428--Short Circuit
---------------------------                   ----------------------
2239586--Big Bang Piggy Bankin'               2014133--Platinum FX Series
-------------------------------               ---------------------------
2237570--Filthy Rich                          2008263--Reel `Em In
--------------------                          --------------------
2223212--Play That Plays                      1971778--American Spirit
------------------------                      ------------------------
2166338--Heat Wave                            1959320--Wild and Loose
------------------                            -----------------------
2154293--Winning Streak                       1955374--Extra Point
-----------------------                       --------------------
2152963--Two Dollar Bill                      1935978--Heavy Hitter
------------------------                      ---------------------
2131215--Wild Zone                            1920998--Multi Magic
------------------                            --------------------
2131213--Quick Bucks                          1890610--Midas Magic
--------------------                          --------------------
2129481--Easy Money                           1876030--Colour of Money
-------------------                           ------------------------
2127796--Shopping Spree                       1857795--Multi-Pay Poker
-----------------------                       ------------------------
2127795--Silver Streak
----------------------
2114793--Pay'n Double
---------------------
2114792--Triple Treat
---------------------
                                   Schedule B

75-692596--Cast for Cash                      75-650094--Rampup
------------------------                      -----------------
75-691903--Socks `N Such                      75-643523--We Make Gaming Fun
------------------------                      -----------------------------
75-689744--Sudden Riches                      75-639243--Winning Bid
------------------------                      ----------------------
75-679792--Chairman of the Board              75-622923--Game Stack
--------------------------------              ---------------------
75-668081--Cash Advance                       75-622424--Perfect Match
-----------------------                       ------------------------
75-668080--Super Scatter                      75-616817--Auction House
------------------------                      ------------------------

<PAGE>

75-570741--Money Fever                        75-386014--Rocket to Riches
-----------------------                       ---------------------------
75-540606--Jackpot Limbo                      75-385909--The Finer Things
------------------------                      ---------------------------
75-498141--Reel Big Fish                      75-385908--Road to Riches
------------------------                      -------------------------
75-498140--Reel Big Pigs                      75-385906--Real Reel Bonus Series
------------------------                      ---------------------------------
75-497874--Reel Big Progressives              75-380338--Boom
--------------------------------              ---------------
75-497872--Reel Wild Progressives             75-377396--Rock & Roll Bowl
---------------------------------             ---------------------------
75-482022--Copy Cat                           75-375059--American Reels Plus
-------------------                           ------------------------------
75-477777--Simply Wild                        75-374184--Mega Multiplier 125
----------------------                       ------------------------------
75-472272--River Belle 21                     75-349931--Top Banana
-------------------------                     ---------------------
75-460640--On a Roll                          75-342751--Instant Winner
--------------------                          -------------------------
75-453337--Build a Fortune                    75-338729--Multi-Keno
--------------------------                    ---------------------
75-453336--Roll a Fortune                     75-338718--Multi-Pay Keno
-------------------------                     -------------------------
75-451860--Roll and Win                       75-320449--American 7's Plus
-----------------------                       ----------------------------
75-445752--Once Around                        75-748626--WMS Gaming Inc.
----------------------                        --------------------------
75-440566--Big Money Wheel                    75-294770--Times Machine
--------------------------                    ------------------------
75-435603--Creature Comforts                  75-294623--Grab for Cash
----------------------------                  ------------------------
75-431423--Roll in the Dough                  75-290301--Pay `N Triple
----------------------------                  ------------------------
75-431397--Real Estate                        75-269965--Top Cat
----------------------                        ------------------
75-431396--Life of Luxury                     75-169289--Magic Show
-------------------------                     ---------------------
75-424880--Reel Rich                          75-162924--Mermaid's Treasure
--------------------                          -----------------------------
75-424875--Reels of Riches                    75-112661--Cash Machine
--------------------------                    -----------------------
75-424874--Make me Rich
-----------------------
75-402372--Jackpot Party
------------------------
75-390682--Buy-a-Pay
--------------------
75-390672--Multiplier Mayhem
----------------------------
75-390668--Party Pooper
-----------------------

<PAGE>

                  ADDENDUM TO WMS GAMING INC. LICENSE AGREEMENT

     THIS ADDENDUM TO WMS GAMING INC. LICENSE AGREEMENT, dated December 15, 1999
(this "Addendum") is entered into and effective this 7th day of September, 2000,
by and between WMS GAMING INC., a Delaware corporation with offices at 3401 N.
California Avenue, Chicago, IL 60681 ("Licensor"); and MULTIMEDIA GAMES, INC., a
Texas corporation with offices at 8900 Shoal Creek Blvd., Suite 300, Austin, TX
78757 ("Licensee"). Licensor and Licensee will hereafter collectively be
referred to as the "Parties".

     The purpose of this Addendum is to address and clarify certain issues
raised in a letter dated January 4, 2000, from MGAM's counsel on behalf of
Clifton Lind and Gary Loebig to Kevin L. Verner. All provisions of the WMS
Gaming Inc. License Agreement between the Parties (the "Base Agreement") not
modified herein shall remain in full force and effect. All capitalized terms not
defined herein shall have the meaning set forth in the Base Agreement.

     1. Sale and Distribution of Licensed Products. Pursuant to Section 4.02 of
        ------------------------------------------
the Base Agreement, Licensor hereby approves and consents to the sale and
distribution of the Licensed Products, including without limitation on a
purchase, lease/purchase, or rental basis as set forth in Section 3 herein,
through Licensee's wholly owned subsidiary MegaBingo, Inc., a Delaware
corporation ("MBI"). Licensee shall remain subject to its obligations under the
Base Agreement.

     2. Outside Contractor. The Parties agree that MGAM and/or MBI, as
        ------------------
applicable, may utilize the services of Potentia Software Solutions, Inc.
("Potentia"), and its principals, Jeff Lind ("Lind") and Joe Enzminger
("Enzminger"), to assist their software engineers in the development of various
games' designs, systems development and other developments related to the
Licensed Products. Pursuant to Section 10.04 of the Base Agreement, Licensor
hereby consents to the use of Potentia, Lind and Enzminger for such purposes;
provided, however, that, pursuant to Section 17 of the Base Agreement, Potentia,
Lind and Enzminger shall execute an agreement to abide by the confidentiality
provisions contained in said Section 17.

     3. Revenue Participation. Pursuant to Section 1.01 of the Base Agreement,
        ---------------------
Licensor hereby approves and consents to the offer by Licensee of the Licensed
Property on a "lease or revenue participation basis" subject to the terms and
conditions contained in this Addendum. In the event an Indian tribe within the
State of Washington desires to acquire the Licensed Property on a "purchase" or
"lease/purchase" basis under MBI's form of Equipment

                                       24

<PAGE>

Agreement, then the provisions of Section 4.02 of the Base Agreement shall
continue to bind the Parties and shall be unmodified by this Addendum, and
Licensee shall pay Licensor the License fee of $2,500.00 per unit under the Base
Agreement for each unit invoiced, distributed, placed for trial or sold by
License on either a "purchase" or "lease/purchase" basis; provided, however,
that any such "lease/purchase basis shall only be used to finance the purchase
price of the Licensed Property on commercially reasonable terms, and that any
other form of "lease/purchase" basis shall be subject to the "rental" provisions
set forth below. If however, an Indian tribe within the State of Washington
desires to acquire the Licensed Property on a "rental" basis under the
applicable form of MBI Equipment Agreement, then Licensee shall continue to pay
$2,500.00 per unit under the Base Agreement for each unit placed on a "rental"
basis and the units of the License Products placed under such "rental"
agreements shall continue to be credited toward the Guaranteed Minimum as set
forth in Section 5 of the Base Agreement, but the payments in Section 4.02 of
the Base Agreement shall be modified as follows:

(a)  The "Rent" as defined under the applicable Equipment Agreement shall be
     paid as between Licensor and Licensee as follows:

     (i)   Prior to any "split" of the Rent between Licensor and Licensee as set
           forth in clause (ii) immediately below, Licensee shall first recover
           from the payments of Rent (1) the License Fee paid to Licensor under
           Section 4.02 of the Base Agreement and (2) MBI's maintenance fee of
           $45 per player station per month on an ongoing basis.

     (ii)  Subsequent to Licensee's receipt of the amounts set forth above,
           Licensor shall receive Fifty Percent (50%) of the Rent from
           Licensor/MBI. MBI shall retain the remaining Fifty Percent (50%) of
           the Rent.

     (iii) MBI shall have the right to change its rental fee and maintenance
           fees after thirty (30) days' prior written notice to Licensor.

     This Addendum may be executed in two or more counterparts, each of which
shall be deemed an original and all of which, taken together, shall constitute
one and the same instrument. Any such counterpart may be executed by facsimile
signature with only verbal confirmation, and when so executed and delivered
shall be deemed an original and such counterpart(s) together shall constitute
only one original.

                                       25

<PAGE>

     IN WITNESS WHEREOF, the Parties have caused this Addendum to be executed by
their duly authorized representatives as of the day and year first above
written.

     MEGABINGO, INC.                     WMS GAMING, INC.

     By:                                 By:
        -------------------------            ----------------------------
     Name:                               Name:
          -----------------------             ---------------------------
     Title:                              Title:
           -----------------------              -------------------------

                                       26

<PAGE>

                  ADDENDUM TO WMS GAMING INC. LICENSE AGREEMENT

THIS ADDENDUM TO WMS GAMING INC. LICENSE AGREEMENT, dated December 15, 1999
(this "Addendum") is entered into and effective this 7th day of September, 2000,
by and between WMS GAMING INC., a Delaware corporation with offices at 3401 N.
California Avenue, Chicago, IL 60681 ("Licensor"); and MULTIMEDIA GAMES, INC., a
Texas corporation with offices at 8900 Shoal Creek Blvd., Suite 300, Austin, TX
78757 ("Licensee"). Licensor and Licensee will hereafter collectively be
referred to as the "Parties".

The purpose of this Addendum is to address and clarify certain issues raised in
a letter dated January 4, 2000, from MGAM's counsel on behalf of Clifton Lind
and Gary Loebig to Kevin L. Verner. All provisions of the WMS Gaming Inc.
License Agreement between the Parties (the "Base Agreement") not modified herein
shall remain in full force and effect. All capitalized terms not defined herein
shall have the meaning set forth in the Base Agreement.

1. Sale and Distribution of Licensed Products. Pursuant to Section 4.02 of the
   ------------------------------------------
Base Agreement, Licensor hereby approves and consents to the sale and
distribution of the Licensed Products, including without limitation on a
purchase, lease/purchase, or rental basis as set forth in Section 3 herein,
through Licensee's wholly owned subsidiary MegaBingo, Inc., a Delaware
corporation ("MBI"). Licensee shall remain subject to its obligations under the
Base Agreement.

2. Outside Contractor. The Parties agree that MGAM and/or MBI, as applicable,
   ------------------
may utilize the services of Potentia Software Solutions, Inc. ("Potentia"), and
its principals, Jeff Lind ("Lind") and Joe Enzminger ("Enzminger"), to assist
their software engineers in the development of various games' designs, systems
development and other developments related to the Licensed Products. Pursuant to
Section 10.04 of the Base Agreement, Licensor hereby consents to the use of
Potentia, Lind and Enzminger for such purposes; provided, however, that,
                                                -----------------
pursuant to Section 17 of the Base Agreement, Potentia, Lind and Enzminger shall
execute an agreement to abide by the confidentiality provisions contained in
said Section 17.

3. Revenue Participation. Pursuant to Section 1.01 of the Base Agreement,
   ---------------------
Licensor hereby approves and consents to the offer by Licensee of the Licensed
Property on a "lease or revenue participation basis" subject to the terms and
conditions contained in this Addendum. In the event an Indian tribe within the
State of Washington desires to acquire the Licensed Property on a "purchase" or
"lease/purchase" basis under MBI's form of Equipment Agreement, then the
provisions of Section 4.02 of the Base Agreement shall continue to bind the
Parties and shall be unmodified by this Addendum, and Licensee shall pay
Licensor the License fee of $2,500.00 per unit under the Base Agreement for each
unit invoiced, distributed, placed for trial or sold by License on either a
"purchase" or "lease/purchase" basis; provided, however, that any such
"lease/purchase basis shall only be used to finance the purchase price of the
Licensed Property on commercially reasonable terms, and that any other form of
"lease/purchase" basis shall be subject to the "rental" provisions set forth
below. If however, an Indian tribe within the State of Washington desires to
acquire the Licensed Property on a "rental" basis under the applicable form of
MBI Equipment Agreement, then Licensee shall continue to pay $2,500.00 per unit
under the Base Agreement for each unit placed on a "rental" basis and the units
of the License Products placed under such "rental" agreements shall continue to
be credited toward the

                                       1

<PAGE>

Guaranteed Minimum as set forth in Section 5 of the Base Agreement, but the
payments in Section 4.02 of the Base Agreement shall be modified as follows:

(a)  The "Rent" as defined under the applicable Equipment Agreement shall be
     paid as between Licensor and Licensee as follows:

     (i)   Prior to any "split" of the Rent between Licensor and Licensee as set
           forth in clause (ii) immediately below, Licensee shall first recover
           from the payments of Rent (1) the License Fee paid to Licensor under
           Section 4.02 of the Base Agreement and (2) MBI's maintenance fee of
           $45 per player station per month on an ongoing basis.

     (ii)  Subsequent to Licensee's receipt of the amounts set forth above,
           Licensor shall receive Fifty Percent (50%) of the Rent from
           Licensor/MBI. MBI shall retain the remaining Fifty Percent (50%) of
           the Rent.

     (iii) MBI shall have the right to change its rental fee and maintenance
           fees after thirty (30) days' prior written notice to Licensor.

This Addendum may be executed in two or more counterparts, each of which shall
be deemed an original and all of which, taken together, shall constitute one and
the same instrument. Any such counterpart may be executed by facsimile signature
with only verbal confirmation, and when so executed and delivered shall be
deemed an original and such counterpart(s) together shall constitute only one
original.

IN WITNESS WHEREOF, the Parties have caused this Addendum to be executed by
their duly authorized representatives as of the day and year first above
written.

MEGABINGO, INC.                         WMS GAMING, INC.

By:                                     By:
   ------------------------------------    -------------------------------------

Name:                                   Name:
     ----------------------------------      -----------------------------------

Title:                                  Title:
      ---------------------------------       ----------------------------------

                                       2<PAGE>

Exhibit 10.14

                                BALLY GAMING INC.
                                LICENSE AGREEMENT

         THIS LICENSE AGREEMENT (this "Agreement") is made as of the ____ day of
_________, 2001, by and between BALLY GAMING INC., a Nevada corporation with
offices at 6601 South Bermuda Road, Las Vegas, Nevada 89119 ("Licensor or
Bally") and MULTIMEDIA GAMES, INC., a Texas corporation, with offices at 8900
Shoal Creek Blvd., Suite 300, Austin, TX 78757. ("Licensee or MGAM"). Licensor
and Licensee may be referred to individually as a "Party" and collectively as
the "Parties."

                              W I T N E S S E T H:

         WHEREAS, Licensor owns or licenses the rights in the game themes set
forth on Exhibit "A" attached hereto and made a part hereof, as supplemented by
the Parties from time to time. The game themes listed on Exhibit "A" consist of
the game play, graphical artwork and/or video images, and audio features for
each game theme listed on Exhibit A, including without limitation all gaming
device trademarks, logos and other intellectual property associated therewith
(the "Bally Games");

         WHEREAS, Licensee manufactures a gaming system and certain types of
equipment that may be associated with the Bally Games;

         WHEREAS, Licensor is engaged in the business of manufacturing,
distributing and selling gaming devices; and

         WHEREAS, Licensee desires to license the Bally Games and/or purchase
certain equipment from Licensor to be used in connection with the lawful
development, manufacture, distribution and sale of its casino gaming systems at
Indian tribal casinos within the State of Washington, located on "Indian lands,"
as defined in Title 25, Section 2703(4) of the United States Code, and operating
under tribal/state compacts (or other arrangements) with the State of Washington
(the "Compacts");

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties, intending to be legally bound,
covenant and agree as follows:

1.       GRANT OF LICENSE:

1.01 Licensor hereby grants and Licensee hereby accepts, for the Term of this
Agreement (as defined in Section 3 hereof) and subject to the terms and
conditions hereinafter set forth, the exclusive license (with the limitations
provided below) to utilize the Bally Games in the manufacture of the Licensed
Products (as defined below) and further to market, sell, maintain, rent or
otherwise distribute the Bally Games in Licensed Products at Licensee's
discretion, only on Indian lands in the Territory (as defined below) under
agreements to be negotiated by Licensee and subject to the terms and conditions
of this Agreement. This license shall include the right of Licensee to offer the
Bally Games in Licensed Products, as provided herein, on a

                                        1

<PAGE>

lease and/or revenue participation basis. This exclusive license granted herein
is limited to use in Bally Cabinets and MGAM Cabinets (as defined below) only in
the Territory.

1.02 "Licensed Products" shall mean the gaming software and gaming devices,
player stations, cabinets and other equipment manufactured, sold, rented, or
otherwise distributed by Licensee to Tribal Casinos in the Territory hereunder,
which gaming devices embody and utilize the Bally Games. As used in this
Agreement, the Bally Games and the Cabinets (as defined below) shall be included
in the meaning of the term "Licensed Products."

1.03 The Parties acknowledge and agree that Licensor has entered into that
certain Agreement dated April 20, 1999 with Oasis Technologies, Inc., a Nebraska
corporation (the "Oasis Agreement"), and that this Agreement with Licensee is
contingent upon the termination or amendment of the Oasis Agreement in order to
allow Licensor to grant the rights provided hereunder to Licensee. Therefore, it
is an express condition precedent to this Agreement that the Oasis Agreement is
terminated or appropriately amended (the "Condition Precedent"). In the event
the Oasis Agreement is amended to grant Oasis Technologies, Inc. the
non-exclusive license to use, market, sell, maintain, or rent Bally Games in the
Territory, Licensee agrees that its exclusive license granted hereunder is
subject to the rights granted Oasis Technologies, Inc.

1.04 Notwithstanding any other terms and conditions hereof to the contrary, the
obligations of the Parties hereunder are subject to the Parties obtaining and
maintaining all gaming licenses, permits and approvals necessary to consummate
the transactions contemplated hereunder, in particular the approval of the Bally
Games in the Licensed Products by the State of Washington (the "Approvals"). In
no event shall Licensee market, distribute, lease, sell or otherwise place into
operation any Licensed Products, and in no event shall Licensee be required to
meet the guaranteed minimum requirements of Section 6.01 hereof, until all
Approvals have been obtained. In the event all Approvals are not obtained by
July 1, 2001, or in the event the Washington State Gambling Commission (the
"Commission") does not render its approval of this Agreement or the Bally Games
in the Licensed Products by such date, both Parties shall use their best efforts
to obtain the Approvals within ninety (90) days thereafter. In the event all
Approvals are not obtained by November 1, 2001, or in the event the Commission
does not render its approval of this Agreement or the Bally Games in the
Licensed Products by such date, either Party may elect to terminate this
Agreement, in which event Licensee shall return all of the Licensed Products to
Licensor and shall terminate any and all use of the Licensed Products. The
Advance shall be returned to Licensee in the event of a termination pursuant to
this Section 1.04 or in the event that the Condition Precedent is not met by
Licensor. MGAM shall, at its sole expense, be responsible for obtaining
regulatory approval of the Bally Games and the Cabinets within the State of
Washington. Bally will provide MGAM with all reasonable assistance in obtaining
such approvals.

1.05 Notwithstanding any other terms and conditions hereof to the contrary, the
obligations of the Parties hereunder are contingent upon Licensee's approval of
the Bally Cabinets (as defined in Section 4.02 hereof) for compatibility with
the software for the Bally Games to be developed by Licensee under this
Agreement. Subsequent to the execution of this Agreement, Licensee shall provide
Licensor the specifications necessary for Licensor to make its Bally Cabinets
compatible with Licensee's software. Licensor shall submit the first two Bally
Cabinets to Licensee for evaluation by Licensee. Licensee shall have a period of
sixty (60) days from the submission of such Bally Cabinets to evaluate the Bally
Cabinets for software compatibility. In the event that Licensee finds that the
Bally Cabinets are not compatible with the software,

                                        2

<PAGE>

Licensee shall provide specifications to Licensor for the redesign of the Bally
Cabinets to comply with the uses required under this Agreement. Licensor shall
have sixty (60) days from the date it receives the specifications to modify the
Bally Cabinets to comply with the specifications. Licensor shall then submit the
modified Bally Cabinets to Licensee for approval. In the event that the Bally
Cabinets do not meet the approval of Licensee for specifications on or before
July 1, 2001, both Parties will use their best efforts to obtain approval of the
Bally Cabinets as soon as possible thereafter; provided, however, that, if the
Parties are unable to obtain approval of the first two Bally Cabinets by
November 1, 2001, then either Party shall have the right to terminate this
Agreement pursuant to the provisions of Section 1.04 hereof. The same procedures
for approval of the first two Cabinets shall be followed for all other Cabinet
approvals during the Term of this Agreement.

2.       TERRITORY:

         Licensee shall be entitled to use, market, distribute, sell, rent,
and/or maintain the Licensed Products only throughout the state of Washington to
gaming enterprises operated by Indian tribes (the "Tribal Casinos") located on
"Indian lands," as defined in 25 U.S.C. ss. 2703(4) and operating under the
Compacts, and other markets as may be added in the future by amending this
Agreement (the "Territory").

3.       TERM:

         The license granted hereunder shall become effective upon the execution
of this Agreement by the Parties and shall continue for period of three (3)
years commencing on the date of Approvals unless earlier terminated pursuant to
the terms and conditions hereof (the "Initial Term"). Subsequent to the Initial
Term, this Agreement may be extended from year to year upon mutual agreement of
the Parties. The Initial Term and any such subsequent extension thereof shall be
collectively referred to as the "Term."

4.       DUTIES OF THE PARTIES:

4.01 Licensee shall select games that it will develop for the Territory from the
list of the Bally Games set forth in Exhibit "A." The first two Bally Games
shall be approved by Licensor for development contemporaneously with the
execution of this Agreement, and the Cabinets for such Bally Games shall be
approved by Licensee pursuant to Section 1.05 hereof. Exhibit "A" may be
supplemented from time to time with additional games that are developed by Bally
in the sole discretion of Licensor. Licensee shall be solely responsible for
developing and marketing the chosen Bally Games for sale in the Territory. All
such games developed by Licensee shall comply with Appendix X of the Compacts.
Licensee shall develop all Bally Games consistent with the design and quality
standards of Licensor and the Compacts, and Licensor shall have final authority
for approval of all Bally Games used in the Licensed Products, which approval
shall not be unreasonably withheld, and subject to the requirements of the
Compacts. Licensor reserves the right to withdraw any of the Bally Games listed
on Exhibit "A" that are also listed on Exhibit "C," attached hereto and made a
part hereof, if Licensor is unable to obtain the consent of such third party
licensor to the terms and conditions of this Agreement.

4.02 Licensor shall design and manufacture the 19-inch video game cabinets (the
"Bally Cabinets") for the Licensed Products, as more specifically set forth on
Exhibit "B" attached hereto and made a part hereof, which cabinets shall support
Licensee's hardware and software

                                       3

<PAGE>

and which shall display a Bally Game developed by Licensee under this Agreement,
except as provided in Section 6.04 hereof. The Bally Cabinets shall consist of
all components, including but not limited to the glass, wood or metal casing,
monitor, art work and computer components such as the motherboard, as listed on
the specifications set forth on Exhibit "B." Licensee shall have final authority
for approval of all the Bally Cabinets, which approval shall not be unreasonably
withheld. Further, Licensor shall supply Licensee with any and all
specifications for the Bally Games necessary for Licensee to perform under this
Agreement. The failure to provide such specifications shall extend any deadlines
or payment obligations of Licensee under this Agreement for the length of time
that such failure persists.

4.03 Licensor shall make available to Licensee spare and replacement parts for
the Bally Cabinets at Licensor's current price list for such spare or
replacement parts.

4.04 Licensor will provide Licensee its standard limited warranty, as set forth
on Exhibit "D" attached hereto and made a part hereof, on all Bally Cabinets
supplied by Licensor. Licensee may, at its option, purchase extended warranties
for the Cabinets for additional periods of time at a rate of one percent (1%) of
the cost of the applicable Cabinets for each ninety (90) days of extended
warranty period purchased by Licensee. Such warranties shall be assignable by
Licensee to the applicable Tribal Casino.

5.       CONSIDERATION:

5.01 Licensee shall pay Licensor the sum of Two Hundred Fifty Thousand Dollars
($250,000) as an advance against royalties payable to Licensor under this
Agreement (the "Advance"). The Advance shall be payable upon execution of this
Agreement and shall be applied on a prorated basis toward the fees paid
hereunder for the first two hundred (200) Licensed Products sold by Licensee.
The Advance shall be refundable only in the event that the Approvals are not
obtained or the Condition Precedent is not fulfilled.

5.02 Licensee shall pay to Licensor a fee in the amounts as set forth on Exhibit
"B" for each gaming device component of the Licensed Products invoiced,
distributed, placed for trial, rented or sold by Licensee ("Royalties").
Royalties shall be due and payable to Licensor on all Licensed Products
distributed by Licensee, even if not billed or if not billed at regular price,
such as, but not limited to, introductory offers or trials; provided, however,
                                                            -----------------
that no Royalties shall be payable on a reasonable number of Licensed Products'
gaming devices (not to exceed six (6) units of a particular Bally Game)
furnished for free for promotional purposes only. Licensee shall have the right
to sell or distribute Licensed Products through its wholly-owned subsidiaries or
affiliates, including without limitation MegaBingo, Inc., a Delaware corporation
which is a wholly-owned subsidiary of Licensee.

5.03 Licensee shall pay Licensor, as an additional royalty, twenty-five percent
(25%) of the "Daily Fees" received by Licensee attributable to Licensed Products
operating the Bally Games within the Territory ("Daily Fees"). "Daily Fees"
shall be limited to the fees charged by Licensee to the Tribal Casinos for the
Bally Games under its software agreements within the Territory, and shall not
include any rents, hardware maintenance fees or other payments charged by
Licensee under its equipment agreements, hardware maintenance agreements or
other agreements within the Territory. In addition to the foregoing, the Daily
Fees paid by Licensee to Licensor during any month shall not exceed 1.75% of the
"Net Revenues" for the applicable Tribal Casino. "Net Revenues" shall mean gross
revenues from the Bally Games running on the

                                       4

<PAGE>

Licensed Products at the Tribal Casinos, less prizes paid and refunds (i.e, bona
fide return of wagers due to game or system malfunction which are paid by either
Licensee or the Tribal Casinos according to reasonable and customary business
practices). Further, Licensee shall pay certain additional royalty fees which
Licensor may be obligated to pay to third parties, as further specified on
Exhibit "C." All Daily Fees under this Section 5.03 shall be paid to Licensor by
Licensee on the last day of the month for any and all Daily Fees accruing during
the prior month.

5.04 All goods provided by Licensor under this Agreement shall be made available
to Licensee on terms and conditions which are no less favorable than those under
which such goods are provided by Licensor to third parties at comparable
volumes. Such goods shall include, without limitation, the prices charged for
the Bally Cabinets, as well as the delivery schedule of the Bally Cabinets and
supplying spare parts.

6.       GUARANTEED MINIMUM; CONVERSION PRIVILEGES:

6.01 Licensee guarantees to Licensor a minimum purchase of one thousand (1,000)
Bally Cabinets during the twenty-four month period commencing the first day of
the first month after the later to occur of (i) the Approvals; (ii) the date on
which the Commission issues its approval of this Agreement; and (iii) the
fulfillment of the Condition Precedent (the "Guaranteed Minimum Period"). To
reach this 1,000-unit minimum purchase, Licensee shall purchase a minimum of
five hundred (500) units of the Bally Cabinets during both twelve-month periods
during the Guaranteed Minimum Period. In the event that Licensor sells less than
500 units of the Bally Cabinets during either twelve-month period during the
Guaranteed Minimum Period, Licensee shall, in lieu of purchasing the Bally
Cabinets for that twelve-month period, pay Licensor the amount of $500 times the
difference between the 500 units and the amount of units actually purchased by
Licensee, with such payment being due within 30 days after the applicable
twelve-month period; provided, that in the event that License fails to reach the
                     --------------
1,000-unit minimum purchase set forth above during the Guaranteed Minimum Period
then the exclusive license granted herein to the Bally Games shall revert to a
non-exclusive license; provided, however, any Bally Games developed by Licensee
                       -----------------
shall remain exclusive to Licensee. To the extent that Licensee sells over 500
units of the Bally Cabinets during the first twelve-month period of the
Guaranteed Minimum Period, Licensee shall have the right to apply such excess
units to its obligations for the second twelve-month period during the
Guaranteed Minimum Period. Subsequent to the Guaranteed Minimum Period, there
shall be no guaranteed minimum payment required.

6.02 Licensee shall develop a minimum of two Bally Games during each three-month
period during the first year of the Guaranteed Minimum Period and a minimum of
one Bally Game during each three-month period during the second year of the
Guaranteed Minimum Period; provided, however, that Licensee's time for
                           -----------------
development for any Bally Game shall be extended for an amount of time equal to
the time during which Licensor is modifying the Cabinets to comply with the
specifications of Licensee, as provided in Section 1.05 hereof. Subsequent to
the Guaranteed Minimum Period, Licensee shall provide for the development of
Bally Games as it believes such games to be economically feasible within the
Territory.

6.03 Licensee may, in its discretion, convert any MGAM Cabinets, as defined
herein, in the Territory to Bally Games for the price of Fifteen Hundred Dollars
($1,500.00), payable to Licensor on the last day of the month following the
month in which the conversion took place.

                                       5

<PAGE>

Any MGAM Cabinet converted under this section shall be subject to the Daily Fees
provided in Section 5.03. "MGAM Cabinets" shall mean any and all existing
cabinets not manufactured by Bally. The MGAM Cabinets and the Bally Cabinets may
be collectively referred to as "Cabinets."

6.04 Licensee may, in its discretion, purchase Cabinets to be utilized with
games other than the Bally Games at the prices listed on Exhibit "B." Licensee
shall provide Licensor with the necessary specifications and Licensor may, in
its sole discretion, elect to manufacture and sell such Cabinets to Licensee
upon mutually agreeable prices.

6.05 Licensee may, in its discretion, purchase one or more additional Bally
Games, including without limitation glass and other game-required conversion
components (i.e., "game kits"), to be installed on Bally Cabinets or MGAM
Cabinets converted to Bally Games under Section 6.03 hereof. The cost of such
Bally Games shall be $300 per unit, plus 50% of the sales price over $300
charged to the Tribal Casino, but less payments for game kits, if any, made by
Licensee to Oasis Technologies, Inc. under any agreement related to the
Condition Precedent; provided, however, in the event a player station is offered
                     -----------------
to Tribal Casino on a rental basis, the cost of such Bally Games for a rental
unit shall be $500 per unit. Licensee will provide Licensor with a schedule of
conversions under Section 6.03 and of game upgrades under this Section 6.05.

7.       ACCOUNTING:

7.01 Licensee agrees to forward to Licensor, within thirty (30) days after the
end of each month during the Term (the "Royalty Period") commencing with the
first month during which any unit of the Licensed Products is sold or
distributed, a report of the number of units of the Licensed Products sold or
distributed by Licensee within such Royalty Period, the Royalties due therefor,
all information necessary to calculate such Royalties, the number of units
returned and any Royalties credit claimed for units so returned. Licensee agrees
that accompanying each such report shall be payment of the Royalties due to
Licensor, if any, earned by Licensor during such Royalty Period, less the
portion of the Advance paid to Licensor to date and not yet recouped by
Licensee. Such reports shall be required to be submitted with respect to sales
and distributions of the Licensed Products whether or not any amounts are due
under the terms hereof. All payments under this Agreement shall be made in U.S.
dollars. Unless otherwise agreed in writing between the Parties, payment shall,
at the option of Licensee, be made by corporate check or wire transfer to
Licensor.

7.02 Licensee agrees to keep accurate books of account and records covering all
sales, Daily Fees, and Royalties due under this Agreement and to permit Licensor
at its own expense to inspect and copy such books of account and records during
reasonable business hours (upon prior reasonable written notice) for the sole
purpose of verifying the reports to be provided hereunder. Licensor shall keep
any information obtained from any such inspection in confidence and shall
require that its accountants do so as well. In the event that any audit by
Licensor or its accountants reveals that Licensee has underpaid Royalties or
Daily Fees by two percent (2%) or more with respect to any Royalty Period which
is the subject of such audit, Licensee agrees that it shall reimburse Licensor
for the reasonable costs for any such audit. All books of accounts and records
relating to each report to be provided under this Agreement shall be retained by
Licensee for at least two (2) years after the termination or expiration of this
Agreement, and Licensor's audit rights shall survive termination or expiration
of this Agreement. Licensee shall pay to Licensor the amount of any deficiency
discovered by Licensor's audit, with interest from the

                                       6

<PAGE>

date such deficiency was originally due, within fifteen days of notice of such
deficiency. Licensee has the right to review Licensor's audit findings.

7.03 If Licensee fails to timely submit accurate reports, Daily Fees and
Royalties, Licensee shall pay interest on overdue amounts at the monthly rate of
one and one-half percent (1.5%) or the highest rate permitted by law, whichever
is the lower.

7.04 Licensee shall be solely responsible for and shall pay any and all taxes,
levies, duties or other fees or charges which may be imposed by any governmental
jurisdiction including tribal, as a result of the Parties' performance under
this Agreement; provided, however, that Licensor shall be solely responsible for
                -----------------
taxes on Licensor's income and fees and other impositions relating to Licensor's
licensing in any jurisdiction which may be required due to this Agreement,
including without limitation background investigations. If Licensee is required
by a governmental authority to pay withholding taxes on any Royalties payable to
Licensor, Licensee will promptly provide to Licensor copies of documents
evidencing the withholding and payment of such taxes.

8.       QUALITY OF LICENSED PRODUCTS:

8.01 Licensor shall have the right to determine in its reasonable discretion
whether the Licensed Products meet Licensor's standards of merchantability.
Licensee agrees to furnish Licensor free of cost for Licensor's written approval
as to quality and style, up to two (2) stand-alone, demonstration player
stations of each of the Bally Games, up to maximum of six demonstration stations
for the Bally Games, capable of running a demonstration of the applicable Bally
Game(s), but not able to play any applicable game(s), before the manufacture,
sale or distribution (whichever first occurs) of such Licensed Products and the
Licensed Products shall not be sold or distributed by Licensee without such
written approval. Such demonstration player stations shall be submitted for
approval in final form (including all applicable artwork and sound). Licensor
may retain such demonstration player stations at its option. Royalties shall not
be paid by Licensee on such demonstration player stations. Licensor agrees that
it shall use all commercially reasonable efforts to expedite its approval of the
first two Licensed Products submitted to it by Licensee under this Agreement.
Licensor reserves the right to rescind at any time its approval of any Bally
Games used in the Licensed Products, if Licensor determines that Licensee's use
does not meet Licensor's reasonable quality standards and Licensee has not cured
the deficiency within thirty (30) days of notice to Licensee of the deficiency.

8.02 Licensor shall supply Licensee with up to two Cabinets for each of the
Cabinet types listed on Exhibit "B." Licensee and Licensor shall evaluate these
Cabinets pursuant to the provisions of Section 1.05. Licensee may retain such
Cabinets at its option.

8.03 If Licensor disapproves of any item submitted by Licensee for approval
hereunder, Licensor shall furnish at the time notice of disapproval is given to
Licensee a written explanation of the reason(s) for such disapproval and
recommendations for suggested changes, and Licensee shall resubmit such item
after changes have been made for Licensor's approval.

8.04 If approval is not received by Licensee within fifteen (15) business days
after Licensor's receipt of the Licensed Product submitted for approval,
Licensor's approval shall be deemed to have been granted.

                                       7

<PAGE>

9.       INTELLECTUAL PROPERTY RIGHTS:

         Licensor shall retain all right, title and interest in and to all
intellectual property associated with all Bally Games, except as granted to
Licensee hereunder. All Bally Games developed for use in the Territory shall be
considered the intellectual property of Licensee, subject to Licensee's payments
of the Royalties and Daily Fees set forth in Sections 5.02 and 5.03 hereof,
which payments shall survive the termination, for any cause, or expiration of
this Agreement.

10.      MANUFACTURE, MARKETING AND DISTRIBUTION:

10.01 The first shipment of units of each Licensed Product by Licensee in the
Territory shall occur no later than sixty (60) days after the later of (i)
                         -----
Licensor's approval under Section 4.01 hereof or (ii) the approval of the State
of Washington and the approval of the first tribal authority.

10.02 Licensee agrees that it will manufacture, distribute and sell the Licensed
Products and that it will make and maintain adequate arrangements for the
distribution of the Licensed Products. Licensee shall arrange for the
manufacturing, marketing and distribution of the Licensed Products using
commercially reasonable efforts to effect distribution throughout the Territory.

10.03 Licensee shall develop data contained in the Licensed Product (to the
extent it is permitted to do so), all artwork, designs, copy, literary text,
other computer software, and advertising and promotional material of any sort
incorporating or based on the Bally Games using its own employees or independent
contractors or affiliates. Such affiliates or contractors will comply with
Licensee's compliance program.

11.      REPRESENTATIONS AND WARRANTIES:

11.01 Licensee hereby represents and warrants that it is free to enter into and
fully perform this Agreement; that Licensee is a corporation validly existing
under the laws of the State of Texas and qualified to conduct business in the
state of Washington; that Licensee has all licenses and permits required to
allow Licensee to sell the Licensed Products in the Territory, including without
limitation any required by the Commission.

11.02 Licensor hereby represents and warrants that it is free to enter into and
fully perform this Agreement; that Licensor is a corporation validly existing
under the laws of the State of Nevada; that Licensor is the sole owner or
licensee of the Bally Games and has the full and exclusive power to grant the
rights and licenses to the Bally Games as described herein, subject to the
Condition Precedent; and that Licensor has obtained all necessary gaming or
other licenses under the laws of the state of Washington, including without
limitation any required by the Commission, to perform the terms and conditions
of this Agreement.

 12.     INDEMNIFICATION:

12.01 Each Party agrees to indemnify and hold the other (including officers,
directors, agents and employees of such Party or its subsidiaries, affiliates
and licensors) harmless against any loss, damage, expense or cost (including
reasonable attorneys' fees) arising out of any claim,

                                       8

<PAGE>

demand, suit or judgment resulting from any breach of any warranty or
representation set forth in Section 11 above. Each Party shall promptly inform
the other in writing of any such claim, demand, suit or judgment.

12.02 In connection with any such claim, demand or suit referred to above, the
party so indemnifying (the "Indemnitor") agrees to defend, contest or otherwise
protect the indemnified party (the "Indemnitee") against any such suit, action,
investigation, claim or proceeding at the Indemnitor's own cost and expense. The
Indemnitee shall have the right, but not the obligation to participate, at its
own expense, in the defense thereof by counsel of its own choice. In the event
that the Indemnitor fails timely to defend, contest or otherwise protect against
any such suit, action, investigation, claim or proceeding, the Indemnitee shall
have the right upon twenty (20) days' written notice to the Indemnitor to
defend, contest or otherwise protect against the same and make any compromise or
settlement thereof and recover the entire cost thereof from the Indemnitor,
including without limitation, reasonable attorneys' fees, disbursements and all
reasonable amounts applied as a result of such suit, action, investigation,
claim or proceeding or compromise or settlement thereof. The obligations
hereunder shall survive the termination or expiration of this Agreement.

12.03 Licensee agrees that it will obtain and maintain during the Term at its
own expense, general liability insurance (including coverage for product
liability) from a recognized and qualified insurance company naming Licensor as
additional insured in the amount of at least Three Million Dollars
($3,000,000.00) per occurrence against any claims, suits, losses or damages,
including attorneys' fees, arising out of any alleged defects in the Licensed
Products or the manufacture, marketing, distribution, sale or use of the
Licensed Products. Such policy shall be non-cancelable except after thirty (30)
days' prior written notice to Licensor. As proof of such insurance, a fully paid
certificate of insurance will be submitted to Licensor by Licensee for
Licensor's prior written approval before any Licensed Product is distributed or
sold, and at the latest within thirty (30) days after the date of this
Agreement.

12.04 MGAM and Bally shall each notify the other promptly upon learning of any
infringing, unauthorized use of the other's intellectual property which is the
subject of this Agreement.

13.      EVENTS OF DEFAULT AND TERMINATION:

13.01

(a) Licensee shall be deemed to be in default of this Agreement, and Licensor
shall have the right to immediately terminate this Agreement or notify Licensee
that Licensor has revoked the exclusive license granted herein and that such
license grant under this Agreement is now a non-exclusive license, in the event
Licensee fails after thirty (30) days' written notice to Licensee to make any
payment due and owing under the terms of this Agreement, furnish any statement
in accordance herewith, or completely comply with any other of Licensee's
obligations hereunder.

(b) If during the Term of this Agreement Licensee shall be unable to pay its
liabilities when due, or shall make any assignment for the benefit of creditors,
or shall file any petition under any federal or state bankruptcy statute, or be
adjudicated a bankrupt or insolvent, or if any receiver is appointed for its
business or property, or if any trustee in bankruptcy shall be appointed under
the laws of the United States or any state, and in the case of an involuntary
filing only, such

                                       9

<PAGE>

impediment is not removed within thirty (30) days from the inception of same,
Licensor may terminate this Agreement upon written notice.

(c) If during the Term of this Agreement any of Licensee's gaming licenses is
suspended, revoked or otherwise made ineffective by any gaming regulatory
agency, or Alliance Gaming Corporation's Compliance Committee disapproves or
withdraws its approval as provided in Section 15.02 hereof, Licensor shall have
the immediate right to terminate this Agreement; provided that the provisions of
                                                 --------
Section 6 shall not be applicable or operative in this event.

13.02

(a) Licensor shall be deemed to be in default of this Agreement, and Licensee
shall have the right to immediately terminate this Agreement, in the event
Licensor fails, after thirty (30) days' written notice to Licensee, to
completely comply with any of Licensor's obligations hereunder.

(b) If, during the Term of this Agreement, Licensor shall be unable to pay its
liabilities when due, or shall make any assignment for the benefit of creditors,
or shall file any petition under any federal or state bankruptcy statute, or be
adjudicated a bankrupt or insolvent, or if any receiver is appointed for its
business or property, or if any trustee in bankruptcy shall be appointed under
the laws of the United States or any state, and in the case of an involuntary
filing only, such impediment is not removed within thirty (30) days from the
inception of same, Licensor may terminate this Agreement upon written notice.

(c) If during the Term of this Agreement any of Licensor's gaming licenses are
suspended, revoked or otherwise made ineffective by any gaming regulatory
agency, or Licensee disapproves or withdraws its approval as provided in Section
15.03 hereof; Licensee shall have the immediate right to terminate this
Agreement; provided that the provisions of Section 6 shall not be applicable or
           --------
operative in this event.

14.      EXPIRATION OR TERMINATION OF AGREEMENT:

14.01 Upon any termination of this Agreement, Licensee and the Tribal Casinos
shall have the right to continue to use and maintain the Licensed Products,
along with the associated Bally Games and the Cabinets, already in operation,
but subject to the continued payment of Royalties or Daily Fees, along with the
following consequences:

(a) all guaranteed minimums incurred prior to the date of termination shall be
due and payable at the end of the applicable time period (except as provided in
Section 13.01.C.).

(b) Licensor shall thereafter be free to license others to use the Bally Games
in the Territory;

(c) Licensee shall (i) within thirty (30) days following termination of this
Agreement, deliver a preliminary accounting and inventory to Licensor of all
Licensed Products on hand and all Licensed Products sold up to the date of such
termination; (ii) within forty-five (45) days following such termination,
deliver a final accounting and inventory to Licensor of all Licensed Products on
hand and all Licensed Products sold up to the date of termination of this
Agreement; (iii) make payment to Licensor of all monies then outstanding under
this Agreement within thirty (30) days following such termination; (iv) certify
within forty-five (45) days following such termination full compliance with this
Agreement, including but not limited to the provisions of

                                       10

<PAGE>

this section; and (v) at Licensor's election, deliver to Licensor all unsold
              ---
copies of the Licensed Products in inventory or destroy the remaining inventory
and certify as to the remaining inventory's destruction (subject to subsection
(d) below);

(d) in the event of termination of this Agreement, other than a termination by
Licensor as a result of a breach of this Agreement by Licensee, subject to the
provisions of Section 5 hereof, Licensee may continue to sell for a period of
ninety (90) days (subject to termination by Licensor as a result of a material
breach of this Agreement by Licensee) after the effective date of termination
("Sell-Off Rights") all approved copies of the units of the Licensed Products
produced prior thereto. Within fifteen (15) days following the termination of
the Sell-Off Rights, Licensee shall (i) deliver a final accounting to Licensor
containing the information specified for periodic statements; (ii) make payment
of all monies due hereunder to Licensor; and (iii) deliver the remaining
inventory to Licensor or, at Licensor's election, destroy the remaining
inventory and certify as to the remaining inventory's destruction.

14.02 In the event this Agreement is terminated as a result of a breach of this
Agreement by Licensee or subsequent to the Sell-Off Rights, all of Licensor's
and its affiliates' and licensors' materials, including, without limitation, the
Confidential Information (as defined below), shall be returned to Licensor by
Licensee and no further disposition or use of the Licensed Products, other than
the use and maintenance of the Licensed Products by Licensee or the Tribal
Casinos which began prior to such expiration or termination, may be made without
the prior written approval of Licensor.

15.      COMPLIANCE WITH LAWS:

15.01 This Agreement is contingent on any necessary initial and continued
approvals and licenses from any regulatory authorities having jurisdiction over
the Parties or the subject matter of this Agreement. Each Party shall promptly
apply to the appropriate regulatory authorities for any licenses and approvals
necessary for that Party to perform under this Agreement, shall diligently
pursue its applications and pay all associated costs and fees, and shall
otherwise cooperate with any requests, inquiries, or investigations of any
regulatory authorities or law enforcement agencies in connection with Licensee,
Licensor or their affiliates, or this Agreement. If any license or approval
necessary for either Party to perform under this Agreement is denied, suspended,
or revoked, this Agreement shall be void effective the date of the denial,
suspension, or revocation, provided, however, that if the denial, suspension, or
revocation affects performance of the Agreement in part only, the Parties may by
mutual agreement continue to perform under this Agreement to the extent it is
unaffected by the denial, suspension, or revocation.

15.02 Licensee acknowledges that Alliance Gaming Corporation (Licensor's parent
company), as a company operating under privileged licenses in a highly regulated
industry, maintains the "Alliance Compliance Program" as part of a compliance
program to protect and preserve the name, reputation, integrity, and good will
of Alliance and its subsidiaries and affiliates (including Licensor) through a
thorough review and determination of the integrity and fitness, both initially
and thereafter, of any person or company that performs work for those companies
or with which those companies are otherwise associated, and to monitor
compliance with the requirements established by gaming regulatory authorities in
various jurisdictions around the world. This Agreement and Licensor's
association with Licensee are contingent on the continued approval under the
Alliance Compliance Program of Alliance and its compliance committee. Licensee

                                       11

<PAGE>

shall cooperate with Alliance and its compliance committee as reasonably
requested by Alliance or the committee and provide the committee with such
information as it may request. If Alliance, acting on the recommendation of the
committee, withdraws its approval of this Agreement or Licensee for reasons
related to Licensee's suitability, then this Agreement shall be void and neither
Party shall have any rights hereunder. In addition, Licensee shall promptly
provide Licensor with all information reasonably requested by the Compliance
Committee of Licensor with respect to Licensee's (including Licensee's
officers', directors' and controlling shareholders') financial condition,
litigation, indictments, criminal proceedings, and the like, in which they are
or may have been involved, if any, in order for the Licensor's Compliance
Committee to determine that no such information would disclose any fact which
would jeopardize, in any manner, any gaming licenses or permits held by Licensor
or its affiliates with any gaming commission, board or similar regulatory
agency. It shall be an event of default under Section 13.01(c) hereof if
Alliance Gaming Corporation or its compliance committee obtains from any source
information with respect to Licensee or this Agreement that would, in the
opinion of Alliance or the committee or both, jeopardize the gaming licenses,
permits, or status of Alliance or any of its subsidiaries or affiliates
(including Licensee), with any gaming commission, board, or similar regulatory
or law enforcement authority.

15.03 Licensor acknowledges that Licensee (and its wholly-owned subsidiary MBI),
as a company operating under privileged licenses in a highly regulated industry,
maintains a compliance program to protect and preserve the name, reputation,
integrity, and good will of Licensee and its subsidiaries and affiliates
(including MBI) through a thorough review and determination of the integrity and
fitness, both initially and thereafter, of any person or company that performs
work for those companies or with which those companies are otherwise associated,
and to monitor compliance with the requirements established by gaming regulatory
authorities in various jurisdictions around the world. This Agreement and
Licensee's association with Licensor are contingent on the continued approval
under Licensee's compliance program. Licensor shall cooperate with Licensee as
reasonably requested by Licensee and provide Licensee with such information as
it may request. Licensee, acting under its compliance program, shall have the
right to withdraw its approval of this Agreement or Licensor for reasons related
to Licensor's suitability, in which case this Agreement shall be void and
neither Party shall have any rights hereunder. In addition, Licensor shall
promptly provide Licensee with all information reasonably requested by the
Compliance Committee of Licensee with respect to Licensor's (including
Licensor's officers', directors' and controlling shareholders') financial
condition, litigation, indictments, criminal proceedings, and the like, in which
they are or may have been involved, if any, in order for the Licensee to
determine that no such information would disclose any fact which would
jeopardize, in any manner, any gaming licenses or permits held by Licensee or
its subsidiaries or affiliates with any gaming commission, board or similar
regulatory agency. It shall be an event of default under Section 13.02(c) hereof
if Licensee obtains from any source information with respect to Licensor or this
Agreement that would, in the opinion of Licensee, jeopardize the gaming
licenses, permits, or status of Licensee or any of its subsidiaries or
affiliates (including MBI), with any gaming commission, board, or similar
regulatory or law enforcement authority.

16.      CONFIDENTIAL INFORMATION/NON-SOLICITATION:

(a) Licensee shall keep in confidence, not disclose to any third party and not
use for any purpose except its performance under this Agreement, without the
written permission of Licensor, the terms of this Agreement and the information
of Licensor, its affiliates or licensors

                                       12

<PAGE>

made known to Licensee under this Agreement. The foregoing requirement of
confidentiality shall not apply to information that is (a) in the public domain
through no wrongful act of Licensee, (b) disclosed to Licensee by a third party
which is under no obligation of confidentiality with respect to such information
and which does not place Licensee under such an obligation, or (c) required to
be disclosed by applicable rules and regulations of federal, state, local or
tribal government agencies or judicial bodies. This obligation of
confidentiality: (i) shall survive termination or expiration of this Agreement
and (ii) shall extend to any affiliates, agents or subcontractors of Licensee.

(b) Licensor shall keep in confidence, not disclose to any third party and not
use for any purpose except its performance under this Agreement, without the
written permission of Licensee, the terms of this Agreement and the information
of Licensee, its affiliates or licensors made known to Licensor under this
Agreement. The foregoing requirement of confidentiality shall not apply to
information that is (a) in the public domain through no wrongful act of
Licensor, (b) disclosed to Licensor by a third party which is under no
obligation of confidentiality with respect to such information and which does
not place Licensor under such an obligation, or (c) required to be disclosed by
applicable rules and regulations of federal, state, local or tribal government
agencies or judicial bodies. This obligation of confidentiality: (i) shall
survive termination or expiration of this Agreement and (ii) shall extend to any
affiliates, agents or subcontractors of Licensor.

(c) The Parties agree that this Agreement shall be confidential and not
disclosed to any third parties for any reason without the prior written consent
of the other party. Upon the execution of this Agreement, the Parties shall
agree on the form and content of any announcement(s) relating to the Agreement,
it being understood that MGAM and Licensor's parent corporation are public
companies subject to making public reports under applicable law.

17.      MISCELLANEOUS:

17.01 Each of the parties hereto consents to the exclusive jurisdiction and
venue of the state and federal courts of the State of Washington, with respect
to any matter relating to this Agreement, and each party hereto consents to the
personal jurisdiction of such courts and shall subject itself to such personal
jurisdiction. The parties agree that service of process may be made upon them in
any manner permitted by the rules of such courts and the laws of the state of
Washington.

17.02 A waiver of a default under this Agreement shall not be a waiver of any
other or a subsequent default.

17.03 Each Party shall be solely responsible for all expenses incurred by it in
the performance of this Agreement. Neither Party shall have the authority,
express or implied, to bind the other Party with respect to any matter. The
Parties acknowledge and agree that this Agreement does not create, nor is it
intended to create, a partnership, joint venture, agency or any other
relationship between the Parties.

17.04 In any litigation or arbitration arising under or out of this Agreement,
or in any action brought to compel the arbitration or to enforce the arbitration
award, the prevailing Party shall be entitled to reasonable attorneys' fees and
costs (including without limitation appellate fees and costs) from the
non-prevailing Party.

                                       13

<PAGE>

17.05 This Agreement shall not be assignable by either Party, in whole or in
part, without the prior written consent of the other Party.

17.06 This Agreement constitutes the entire agreement and understanding and
supersedes and cancels any and all prior oral or written agreements and
understandings of the Parties relating to the subject matter hereof. This
Agreement shall not be amended or modified in whole or in part except by a
writing signed by the Parties. No waiver by any Party of any violation of any
provision of this Agreement shall be effective unless given in a signed writing,
nor shall any such waiver be deemed a waiver of any further violation of this
Agreement unless expressly so stated in a signed writing. The section headings
of this Agreement are for convenience of reference only, and shall not
constitute any part of this Agreement. In all cases, the language in all parts
of this Agreement shall be construed simply according to its fair meaning and
not strictly for or against any Party. This Agreement has been made and shall be
interpreted in accordance with the applicable laws of the state of Washington.
The Parties shall each use their respective reasonable best efforts to obtain
the consent or approval of each person or entity, if any, whose consent or
approval shall be required in order to permit it to consummate the transactions
contemplated hereby, and to execute and deliver such instruments and to take
such other action as may be required to carry out the transactions contemplated
by this Agreement.

17.07 All notices hereunder shall be in writing and shall be deemed to have been
given or made when (i) delivered by hand; (ii) delivered by facsimile or
overnight delivery service; or (iii) delivered or mailed by registered or
certified mail, postage prepaid, addressed as follows, until notice of another
address and/or facsimile number shall have been received by the other Party.

If to Licensor:            Alliance Gaming Corporation
                           Attn: Legal Dept.
                           Telephone:  (702) 896-7700
                           Facsimile No.: (702) 896-7990

If to Licensee:            Gary Loebig, Executive Vice President
                           Multimedia Games, Inc.
                           8900 Shoal Creek Boulevard, Suite 300
                           Austin, Texas  78757
                           Telephone:  (512) 371-7100
                           Facsimile:  (512) 371-7114

17.08 If any one or more of the provisions or part of a provision contained in
this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of
this Agreement in any other jurisdiction or any other provision or part of a
provision of this Agreement, but this Agreement shall be reformed and construed
in such jurisdiction to give effect to the intent of the Parties so that it
would be valid, legal and enforceable in such jurisdiction to the maximum extent
possible.

17.09 This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which, taken together, shall constitute
one and the same instrument. Any such counterpart may be executed by facsimile
signature with only verbal

                                       14

<PAGE>

confirmation, and when so executed and delivered shall be deemed an original and
such counterpart(s) together shall constitute only one original.

17.10 Each Party represents to and agrees with the other that it will comply
with all applicable United States laws including all Export Administration
regulations regarding the export of Software and Supporting Equipment and
technology from the United States.

17.11. Neither Party shall be liable to the other Party or any third party for
the failure of the Licensed Products to operate due to an act of God; fire;
casualty; government codes, ordinances, laws, rules, regulations or
restrictions; war or civil disorder; act or decision of a governmental
authority; injunction; technical difficulties; failure of satellite
communications or electrical or telephone power transmission lines or
facilities; strike or labor dispute; or any other cause whether or not beyond
the control of either Party or its contractors, sub-contractors, representatives
and agents. In the event of any such occurrence(s) the performing Party, at its
option, may terminate this Agreement or suspend and defer its performance
hereunder without incurring any liability to the non-performing Party or any
entities or individuals whose claims are predicated upon the operation of the
Licensed Products.

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the day and
year first above written.

MULTIMEDIA GAMES, INC.              BALLY GAMING, INC.

By: ________________________        By: ________________________

Name: ______________________        Name: ______________________

Title: _____________________        Its: _______________________

                                       15

<PAGE>

                                   EXHIBIT "A"

                         GAMES INCLUDED IN THE AGREEMENT

BETTY BOOP (subject to approval by King Features)
        ALL AMERICAN GIRL
        BETTY'S BIG HIT
        BORN TO BOOP
        DOUBLE JACKPOT
        RESPIN ROUND UP
        LOVE MACHINE
        SWING TIME BETTY

BLONDIE (subject to approval by King Features)

        BIG DOUGH
        BIG SPENDER
        MEAL TICKET

BLAZING 7'S
        BLAZING 7'S TIMES PAYS
        TRIPLE BRAZING 7'S DIAMOND LINE

POKER GAMES
        ALL AMERICAN POKER
        BONUS DEUCES WILD
        BONUS POKER
        DEUCES WILD
        DOUBLE BONUS POKER
        FOUR PLAY BONUS POKER
        JOKER JOKER POKER
        JOKER POKER (KINGS OR BETTER)
        SUPER BONUS JOKER POKER
        SUPER BONUS POKER
        TRIPLE PLAY POKER
        TRIPLE POKER
        WHITE LIGHTNING POKER

KENO GAMES
        ALPHABET KENO
        PATTERN KENO
        15 WAY KENO

BABY BOOMER
BLACK AND WHITE DOUBLE JACKPOT MULTIPLIER
BLACK GOLD
BLACK GOLD MULTIPLIER
BLACK JACK (TRADITIONAL)
BLACK JACK BONUS
CALIFORNIA DREAMING
CASH ENCOUNTERS (subject to approval by PTT, Inc.)
DIAMONDS AND DEVILS
FIVE TIMES TEN TIMES PAY
GOAL
GOLD DOWN UNDER
HOT HOT HOT (subject to approval by PTT, Inc.)

                                       16

<PAGE>

KRAZY KOPS
LATIN PASSION
MAGIC SYMBOLS
MONEY BARS
NAUGHTY NICKELS
PAYS OF OUR LIVES
PLATYPUS (subject to approval by PTT, Inc.)
PLAY THE MARKET
POOL SHARKS (8 WAY)
QUICK HITS
RAT RACE
RIDES TO RICHES
SWING TIME
TRIFECTA
WAKE THE GENIE
WISHING WELL

The following games are not included in this agreement and must be negotiated
separately:

        99 BOTTLES OF BEER
        BLACK AND WHITE
        BLACK AND WHITE CAR CAROUSEL
        BLAZING 7'S
        BOX CAR BONUS
        DOUBLE DOUBLE BONUS POKER
        DOUBLE JACKPOT TRIPLE BLAZING 7'S
        GOLD MINE POKER
        GOLD MINE SLOT
        IN THE MONEY
        ISLAND WINS
        MONEY POPPERS
        PRINCE OF PERSIA
        SIVER & GOLD
        WILD ROSE
        WIZARD OF ODDS
        BALL OF FIRE
        DOUBLE BLACK & WHITE
        BLAZING SEVENS DOUBLE JACKPOT
        ROARING 20'S
        DOUBLE HIGH LOW BONUS POKER
        PICK A PEARL POKER

MULTIMEDIA GAMES, INC.                      BALLY GAMING, INC.

Initials _____________________              Initials ____________________

Date _________________________              Date ________________________

                                       17

<PAGE>

                                   EXHIBIT "B"

                    PLAYER TERMINAL EQUIPMENT PRICES TO MGAM*

TYPE OF UNIT                            PRICE**
------------                            -----
                                        WITH BALLY GAME     WITHOUT BALLY GAME
                                        ---------------     ------------------
CASINO SLANT TOP***                     $7,500                     $6,250
UPRIGHT ROUND TOP***                    $6,750                     $5,500
UPRIGHT SQUARE TOP***                   $6,750                     $5,500
ANGLED BAR TOP UNITS***                 $TBD                       $TBD
FLAT BAR TOP UNITS***                   $TBD                       $TBD
SLIMLINE***                             $TBD                       $TBD
GAME CONVERSION KITS****
     .      INCLUDING GLASS    $300 plus 50% of sales price over $300
     .      GAME CONVERSION KITS FOR LEASE              $500
     .      GLASS ONLY                                  $150

*Note 1. Prices subject to change upon 90 days' prior written notice to
Licensee.

**Note 2. The price of the Bally Cabinets and all spare parts and component
parts supplied by Licensor to Licensee under this Agreement shall include a
minimum discount of 20% off Licensor's published retail price in its catalogues.
Such prices shall be subject to change upon 90 days' prior written notice to
Licensee.

***Note 3. The specifications for and the pricing of the Bally Cabinets, as set
forth in this Exhibit "B," are further detailed in the Bally marketing brochure,
which is attached to and made a part of this Exhibit "B." The specifications for
the Bally Cabinets will be subject to modifications mutually agreed upon by the
Parties, including without limitation the modifications described in Section
1.05 hereof.

****Note 4.  See Section 6.5.

SPECIFICATIONS FOR BALLY CABINETS (see Section 4.02)
        . Computer specifications for installation in Bally Cabinets.

CPU Case, MMI Design, Grentek
Cable, Serial, (COM2)
Motherboard, #KD815EEAALPAK10, Intel
CPU PIII 800, #BX80526C800256E, FC, 133
Memory, 64 MB, 133 MHZ, SDRAM, DIMM
Video Card, 32 MEG, TNT2-64, PWRCLR
Tie Wraps, .100"W x 4"L, 78N506
Hard Drive, IDE, 15 GB, 7200 RPM, WD
MS Windows 98 License
Harness, CPU Reset Cable
Power Supply 235W Fortron
Cable, Power External Parts
Utility Board, MFG#PCI-7250
Serial Card, 2 Port, LA VA Port-PCI
Bracket, expansion slot, #84N1060
Label, FCC compliance
Appropriate screws and fasteners.

MULTIMEDIA GAMES, INC.                      BALLY GAMING, INC.

Initials __________________                 Initials __________________

Date ______________________                 Date ______________________

                                       18

<PAGE>

                                   EXHIBIT "C"

               GAMES REQUIRING ADDITIONAL THIRD PARTY ROYALTY FEES

                  GAME              ADDITIONAL ROYALTY FEE
                  ----              ----------------------
BETTY BOOP

        .      ALL AMERICAN GIRL            $TBD

        .      BETTY'S BIG HIT              $TBD

        .      BORN TO BOOP                 $TBD

        .      DOUBLE JACKPOT               $TBD

        .      RESPIN ROUND UP              $TBD

        .      ROARING 20'S                 $TBD

        .      SWING TIME BETTY             $TBD

BLONDIE
        .      BIG DOUGH                    $995

        .      BIG SPENDER                  $995

        .      MEAL TICKET                  $995

CASH ENCOUNTERS                             $500

PLATYPUS                                    $500

HOT HOT HOT                                 $500

MULTIMEDIA GAMES, INC.                      BALLY GAMING, INC.

Initials ________________________           Initials ____________________

Date ____________________________           Date ________________________

                                       19

<PAGE>

                                    EXHIBIT D

                                STANDARD WARRANTY
                                -----------------

For a period of ninety (90) days following installation or for any additional
warranty period purchased by Licensee under Section 4.04, Bally offers the
standard warranty set forth below.

                            STANDARD LIMITED WARRANTY

         ALL BALLY products are precision built, tested and inspected prior to
shipment, and have been manufactured in compliance with all applicable laws and
regulations of the United States. Bally warrants and guarantees to the original
customer, and any Tribal Casino assignees pursuant to Section 4.04, that all of
its new gaming devices will be free from defects in material and workmanship,
which materially and adversely affect the performance of the gaming device,
throughout the entire warranty period. Minor deviations from any specifications
or standards, which do not so affect the performance of the gaming devices, are
not considered to be defects in materials or workmanship.

         The sole and exclusive remedy in the event of defect is expressly
limited to the adjustment, repair or replacement of defective parts, at the sole
discretion of Bally, to return the product to good working condition. All
component parts not manufactured by Bally are excluded from this warranty. In no
event shall Bally or any of its affiliates, subsidiaries, representatives, or
agents be liable for any direct, indirect, special, incidental or consequential
damages, including loss of use or revenue. This warranty is valid under all
normal use and service of the gaming devices, but is void if the product is not
operated and maintained in accordance with the Bally product literature and
manuals.

         Some states do not allow limitations on how long an implied warranty
lasts, and some states do not allow the exclusion or limitation of incidental or
consequential damages, so the above limitation and exclusion may not apply. This
warranty grants specific legal rights, but original customer and permitted
assignees may also have other rights which vary from state to state.

         EXCEPT AS SPECIFICALLY SET FORTH HEREIN, ALL OTHER WARRANTIES, WHETHER
EXPRESS OR IMPLIED, ARE EXCLUDED FROM THIS AGREEMENT, INCLUDING WARRANTIES OF
FITNESS FOR A PARTICULAR USE AND MERCHANTABILITY, AS WELL AS THOSE WHICH MAY
ARISE UNDER USAGE OF TRADE, COURSE OF DEALING, OR COURSE OF PERFORMANCE. NO
AFFIRMATION OF FACT INCLUDING, BUT NOT LIMITED TO, STATEMENTS CONCERNING
SUITABILITY OF USE, PERFORMANCE, PERCENTAGE OF HOLD, OR PAR VALUE OF A BALLY
PRODUCT SHALL BE DEEMED TO BE A WARRANTY OR GUARANTEE FOR ANY PURPOSE.

MULTIMEDIA GAMES, INC.                      BALLY GAMING, INC.

Initials ______________________             Initials ___________________

Date __________________________             Date _______________________

                                       20

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