Document:

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                                                                    EXHIBIT 4(1)

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION (TOGETHER, THE "SECURITIES
LAWS") AND MAY NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE TRANSFERRED OR
ENCUMBERED IN THE ABSENCE OF COMPLIANCE WITH SUCH SECURITIES LAWS AND UNTIL THE
COMPANY (AS DEFINED HEREIN) HEREOF SHALL HAVE RECEIVED AN OPINION FROM COUNSEL
ACCEPTABLE TO IT THAT THE PROPOSED DISPOSITION WILL NOT VIOLATE ANY APPLICABLE
SECURITIES LAWS. THIS NOTE IS NON-NEGOTIABLE AND NON-TRANSFERABLE AND NO
INTEREST SHALL BE PAID EXCEPT TO THE PAYEE NAMED HEREIN EXCEPT AS OTHERWISE
NOTED HEREIN. THIS NOTE IS NOT SECURED.

                    INNOVATIVE GAMING CORPORATION OF AMERICA

                                 PROMISSORY NOTE

Las Vegas, Nevada
$1,000,000
April 12, 2001

FOR VALUE RECEIVED, Innovative Gaming Corporation of America, a Minnesota
corporation (the "Company"), promises to pay to Blake Capital Partners, LLC (the
"Holder"), in lawful money of the United States of America, the principal sum of
ONE MILLION DOLLARS ($1,000,000), together with interest in arrears on the
unpaid principal balance at a rate equal to 8% per annum, in the manner provided
below. Interest shall be calculated on the basis of a 360-day year of twelve
30-day months.

1.       PAYMENTS.

         1.1 PRINCIPAL AND INTEREST. The principal amount of this Note and all
interest accrued thereon shall be due and payable on the 90th day following the
date of this Note, July 12, 2001 (the "Maturity Date").

         1.2 MANNER OF PAYMENT. All payments of principal and interest on this
Note shall be made by check at such place in the United States of America as
Holder shall designate to the Company in writing. If any payment of principal or
interest on this Note is due on a day which is not a Business Day, such payment
shall be due on the next succeeding Business Day, and such extension of time
shall not be taken into account in calculating the amount of interest payable
under this Note. "Business Day" means any day other than a Saturday, Sunday, or
legal holiday in the State of Nevada.

         1.3 PREPAYMENT. At any time after April 12, 2001, the Company may,
without premium or penalty, at any time and from time to time, prepay all or any
portion of the outstanding principal balance due under this Note, provided that
each such prepayment is accompanied by the accrued

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interest on the amount of principal prepaid calculated to the date of such
prepayment. The Company shall provide Holder with not less than five days
written notice prior to such prepayment.

2.       DEFAULT.

         2.1 EVENTS OF DEFAULT. The occurrence of any one or more of the
following events with respect to Company shall constitute an event of default
hereunder (each an "Event of Default"):

               (a) if Company shall fail to pay when due any payment of
          principal or interest on this Note within 30 days after any such
          payment is due and such failure continues for 30 days after the Holder
          notifies the Company thereof in writing;

               (b) if, pursuant to or within the meaning of the United States
          Bankruptcy Code or any other federal or state law relating to
          insolvency or relief of debtors (a "Bankruptcy Law"), the Company
          shall: (i) commence a voluntary case or proceeding; (ii) consent to
          the entry of an order for relief against it in an involuntary case;
          (iii) consent to the appointment of a trustee, receiver, assignee,
          liquidator or similar official; (iv) make an assignment for the
          benefit of its creditors; or (v) admit in writing its inability to pay
          its debts as they become due; or

               (c) if a court of competent jurisdiction enters an order or
          decree under any Bankruptcy Law that (i) is for relief against the
          Company in an involuntary case, (ii) appoints a trustee, receiver,
          assignee, liquidator or similar official for the Company or
          substantially all of the Company's properties, or (iii) orders the
          liquidation of the Company, and in each case the order or decree is
          not dismissed within 90 days.

         2.2 NOTICE BY THE COMPANY. The Company shall notify Holder in writing
within five days after the occurrence of any Event of Default of which the
Company acquires knowledge.

         2.3 REMEDIES. Upon the occurrence of an Event of Default hereunder
(unless all Events of Defaults have been cured or waived by Holder), Holder may,
at its option (i) by written notice to the Company, declare the entire unpaid
principal balance of this Note, together with all accrued interest thereon,
immediately due and payable regardless of any prior forbearance, and (ii)
exercise any and all rights and remedies available to it under applicable law,
including without limitation the right to collect from the Company all sums due
under this Note.

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3.       TRANSFERABILITY.  Holder is prohibited from transferring its right,
title, and interest in this Note.

4.       MISCELLANEOUS.

         4.1 WAIVER. The rights and remedies of Holder under this Note shall be
cumulative and not alternative. No waiver by Holder of any right or remedy under
this Note shall be effective unless in a writing signed by Holder. Neither the
failure nor any delay in exercising any right, power or privilege under this
Note will operate as a waiver of such right, power or privilege and no single or
partial exercise of any such right, power or privilege by Holder will preclude
any other or further exercise of such right, power or privilege or the exercise
of any other right, power or privilege. To the maximum extent permitted by
applicable law: (a) no claim or right of Holder arising out of this Note can be
discharged by Holder, in whole or in part by a waiver or renunciation of the
claim or right unless in a writing, signed by Holder; (b) no waiver that may be
given by Holder will be applicable except in the specific instance for which it
is given; and (c) no notice to or demand on the Company will be deemed to be a
waiver of any obligation of the Company or of the right of Holder to take
further action without notice or demand as provided in this Note. The Company
hereby waives presentment, demand, protest, and notice of dishonor and protest.

         4.2 NOTICES. Any notice required or permitted to be given hereunder
shall be given by the Company to the Holder or the Holder to the Company in
accordance with the Agreement.

         4.3 SEVERABILITY. If any provision in this Note is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Note will remain in full force and effect. Any provision of this Note held
invalid or unenforceable only in part or degree will remain in full force and
effect to the extent not held invalid or unenforceable.

         4.4 GOVERNING  LAW. This Note will be governed by the laws of the State
of Minnesota  without  regard to conflicts-of-law principles.

         4.5 PARTIES IN INTEREST. This Note shall bind the Company and its
successors and assigns. This Note shall not be assigned by Holder without the
express prior written consent the Company.

         4.6 SECTION HEADINGS; CONSTRUCTION. The headings of Sections in this
Note are provided for convenience only and will not affect its construction or
interpretation. All references to "Section" or "Sections" refer to the
corresponding Section or Sections of this Note unless otherwise specified.

         All words used in this Note will be construed to be of such gender or
number as the circumstances require. Unless otherwise expressly provided, the
words "hereof" and "hereunder" and similar references refer to this Note in its
entirety and not to any specific section or subsection hereof.

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         IN WITNESS WHEREOF, the Company has executed and delivered this Note as
of the date first stated above.

                                 INNOVATIVE GAMING CORPORATION OF AMERICA

                                  By:      ____________________________________
                                  Name:    Roland M. Thomas
                                  Title:   Chief Executive Officer

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                                                                   EXHIBIT 10(1)

                    INNOVATIVE GAMING CORPORATION OF AMERICA

                        SECURITIES PURCHASE AGREEMENT AND
                           LETTER OF INVESTMENT INTENT

                                 PROMISSORY NOTE
                      AND WARRANT TO PURCHASE COMMON STOCK

Innovative Gaming, Inc.
333 Orville Wright Court
Las Vegas, Nevada  89119

         Blake Capital Partners, LLC, hereby subscribes for the purchase of a
$1,000,000 principal amount Promissory Note (the "Note"), in the form attached
hereto as ANNEX A, of Innovative Gaming Corporation of America, a Minnesota
corporation (the "Company"), and warrants to purchase 70,000 shares of the
Company's common stock, $.01 par value, at a $1.00 per-share exercise price, to
be issued to each of (i) Blake Capital Partners, LLC, (ii) Wyncrest Capital and
(iii) Gulfstream Financial Partners (the "Warrants," and collectively with the
Note hereinafter called the "Securities") in the form attached hereto as ANNEX
B, upon the terms and conditions set forth below. The undersigned acknowledges
that this subscription is contingent upon acceptance in whole or in part by the
Company.

         (1) Payment of Purchase Price; Delivery of Note and Warrant. The
undersigned subscriber will pay the purchase price in full to the order of
Innovative Gaming Corporation of America and deliver a complete and manually
signed copy of this Securities Purchase Agreement with such payment to the
Company. The undersigned will (1) send a completed and executed Securities
Purchase Agreement and (2) enclose or deliver a check in the amount of the
undersigned's subscription, PAYABLE TO "INNOVATIVE GAMING CORPORATION OF
AMERICA" TO THE ATTENTION OF ROLAND M. THOMAS, CHIEF EXECUTIVE OFFICER,
INNOVATIVE GAMING CORPORATION OF AMERICA, 333 ORVILLE WRIGHT COURT, LAS VEGAS,
NEVADA 89119; or alternatively, transmit the subscription amount by wire to the
account below:

                    Innovative Gaming Corporation of America
                         US Bank: Account # 153790378100
                               Routing # 121201694

         Upon the Company's acceptance of this Securities Purchase Agreement,
the Securities subscribed for will be registered in the name(s) of the person(s)
or entity/entities, and delivered by certified mail to the address specified on
page 7, or otherwise as instructed by the undersigned. Upon receipt of the
subscription amount by the Company, the Company shall pay an origination fee of
$50,000 to Blake Capital Partners, LLC.

(2) Registration Rights. The Company shall file a registration statement on Form
S-3 with the Securities and Exchange Commission (the "SEC") registering the
shares of the Company's common

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stock within 90 days of the issuance of any Securities under this Agreement,
which registration statement shall cover all 210,000 shares of the Company's
common stock issuable upon exercise of the Warrants. If the Company, at any time
after the issuance of the Securities and before 90 days following such issuance,
shall file a registration statement with the SEC under the Securities Act of
1933, as amended (the "Act"), for the purpose of registering shares of the
Company's common stock for sale to the public, the Company shall give to the
undersigned at least 20 days advance written notice of its intention to file
such registration statement and the undersigned shall have the right to have
included in such registration statement such number of the shares as it shall
designate to the Company within ten days after the date of such notice;
provided, however, that the number of shares to be included in such registration
statement, when added to all the other shares to be included therein, does not
exceed the number of shares which the Company and its underwriters, if any, or
any self-regulatory organization or gaming commission reasonably fix for
inclusion. The undersigned shall furnish the Company with such information as
may be required in connection with such registration statement and will
cooperate to cause such registration to become effective at the earliest
practicable time. If the shares to which such registration relates are to be
sold in an underwritten offering, the undersigned, as a condition to the
inclusion of the shares in the registration statement, shall agree that its
shares will be sold only as a part of such underwritten offering and at the
price and upon the terms fixed by the Company and its underwriters, subject to
the right of the undersigned to withdraw the shares therefrom.

     (3) Certain Litigation Matters. In addition to the Securities subscribed
for hereunder, the undersigned subscriber hereby also subscribes for an interest
and right to ten percent (10%) of the gross proceeds of "certain litigation
matters" that are paid or to be paid to the Company in cash, provided that in
the event that an amount is required to be paid to the Company as licensing or
royalty fees on a going-forward basis and such licensing or royalty arrangement
would require the Investor to be licensed by one or more gaming authority in
order to participate in such licensing or royalty fee arrangement, that the
Investor and the Company will negotiate, in good faith, to agree upon a present
value payment of such licensing or royalty fee stream. The precise scope of the
"certain litigation matters" shall be mutually agreed upon by the parties at the
closing of this subscription.

     (4) Representations of the Investor. In connection with, and in
consideration of the sale of the Securities to the undersigned, the undersigned
hereby represents and warrants to the Company that the undersigned:

     A.   has been given access to full and complete information regarding the
          Company (including the opportunity to meet with the Company's officers
          and review all documents as the undersigned may have requested in
          writing); has utilized such access to the undersigned's satisfaction
          for the purpose of obtaining information in addition to, or verifying
          information included in IGCA's filings with the Securities and
          Exchange Commission, including but not limited to the Company's Form
          10-K for the Fiscal Year ended December 31, 2000 (the "SEC Filings");
          and has been given reasonable opportunity to ask questions of, and
          receiving answers from, such representatives of the Company concerning
          the terms and conditions of the offering of the securities offered
          hereby;

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     B.   realizes that the Note is unsecured and that a purchase of the
          Securities represents a speculative investment involving a high degree
          of risk, including but not limited to the reasons described in the SEC
          Filings;

     C.   understands that the Note is not convertible into IGCA's common stock;

     D.   understands that the Company's common stock may only be sold pursuant
          to a registration statement relating to such securities or pursuant to
          an exemption from registration;

     E.   can bear the economic risk of an investment in the Securities, can
          afford to sustain a complete loss of such investment, has no need for
          liquidity in connection with an investment in the Securities, and can
          afford to hold such securities indefinitely;

     F.   realizes that there will be no market for the Securities, that there
          are significant restrictions on the transferability of the Securities
          and that for these and other reasons, the undersigned may not be able
          to liquidate an investment in the Securities for an indefinite period;

     G.   realizes that the Securities have not been registered for sale under
          the Act, or applicable state securities laws (the "State Laws"), and
          may be sold only pursuant to registration under the Act and State
          Laws, or an opinion of counsel satisfactory to counsel for the Company
          that such registration is not required;

     H.   believes that the investment in the Securities is suitable for the
          undersigned based upon the undersigned's investment objectives and
          financial needs, and the undersigned has adequate means to provide for
          the undersigned's current financial needs and personal/business
          contingencies and has no need for liquidity of investment with respect
          to the Securities; and

     I.   is experienced and knowledgeable in financial and business matters,
          capable of evaluating the merits and risks of investing in the
          Securities, and does not need or desire the assistance of a
          knowledgeable representative to aid in the evaluation of such risks
          (or, in the alternative, has a knowledgeable representative who such
          investor intends to use in connection with a decision as to whether to
          purchase the Securities and who together with such investor has such
          knowledge and experience in financial and business matters that they
          are together capable of evaluating the merits and risks of investing
          in the Securities).

     (5) Investment Intent. The undersigned has been advised that the Securities
have not been registered under the Act or the relevant State Laws but are being
offered, and will be offered and sold, pursuant to exemptions from the Act and
State Laws, and that the Company's reliance upon such exemptions is predicated
in part on the undersigned's representations contained herein. The undersigned
represents and Warrants that the Securities are being purchased for the
undersigned's own account and for long-term investment and without the intention
of reselling or

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redistributing the Securities, that the undersigned has made no agreement
with others regarding any of the Securities, and that the undersigned's
financial condition is such that it is not likely that it will be necessary for
the undersigned to dispose of any of the Securities in the foreseeable future.
The undersigned is aware that (i) in the view of the SEC, a purchase of
securities with an intent to resell by reason of any foreseeable specific
contingency or anticipated change in market values, or any change in the
liquidation or settlement of any loan obtained for the acquisition of any of the
Securities and for which the Securities were or may be pledged as security would
represent an intent inconsistent with the investment representations set forth
above, and (ii) the transferability of the Securities is restricted.

     The undersigned understands that the Note will contain the following
legend:

         This Note has not been registered under the Securities Act of 1933 or
         under the securities laws of any state or other jurisdiction
         (together, the "Securities Laws") and may not be offered for sale,
         sold, or otherwise transferred or encumbered in the absence of
         compliance with such Securities Laws and until the Company (as defined
         herein) thereof shall have received an opinion from counsel acceptable
         to it that the proposed disposition will not violate any applicable
         Securities Laws. This Note is non-negotiable and non-transferable and
         no interest shall be paid except to the payee named herein except as
         otherwise noted herein. This Note is not secured.

     The undersigned further represents and agrees that if, contrary to the
undersigned's foregoing intentions, the undersigned should later desire to
dispose of or transfer any of the Securities in any manner, the undersigned
shall not do so without first obtaining (i) an opinion of counsel satisfactory
to the Company that such proposed disposition or transfer may be made lawfully
without the registration of such securities pursuant to the Act and applicable
State Laws, or (ii) registration of such securities (it being expressly
understood that the Company shall not have any obligation to register such
Securities except as specifically set forth herein).

     (6) Residence. The undersigned represents and warrants that the undersigned
is a bona fide resident of, or if a business entity is duly organized, formed,
or incorporated in the State of Minnesota, and that the Securities are being
purchased by the undersigned in the undersigned's name solely for the
undersigned's own beneficial interest and not as nominee for, on behalf of, for
the beneficial interest transfer to, any other person, trust, or organization
(except as specifically set forth in paragraph (10) of this Agreement).

     PARAGRAPH (7) IS REQUIRED IN CONNECTION WITH THE EXEMPTIONS FROM THE ACT
AND STATE LAWS BEING RELIED ON BY THE COMPANY WITH RESPECT TO THE OFFER AND SALE
OF THE SECURITIES OFFERED BY THIS SECURITIES PURCHASE AGREEMENT. ALL OF SUCH
INFORMATION WILL BE KEPT CONFIDENTIAL AND WILL BE REVIEWED ONLY BY THE COMPANY
AND ITS COUNSEL. The undersigned agrees to furnish any additional information
which the Company or its legal counsel deem necessary in order to verify the
responses set forth below.

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     (7) Accredited Status. The undersigned represents and warrants as follows
(check all that apply):

     ______ A. The undersigned is an individual with a net worth, or a joint net
               worth together with his or her spouse, in excess of $1,000,000
               (In calculating net worth, you may include equity in personal
               property and real estate, including your principal residence,
               cash, short-term investments, stock, and securities. Equity in
               personal property and real estate should be based on the fair
               market value of such property minus debt secured by such
               property).

     ______ B. The undersigned is an individual (not a partnership, corporation,
               etc.) with income in excess of $200,000 in each of the prior two
               years and reasonably expects an income in excess of $200,000 in
               the current year.

     ______ C. The undersigned is an individual (not a partnership, corporation,
               etc.) who, with his or her spouse, had joint income in excess of
               $300,000 in each of the prior two years and reasonably expects
               joint income in excess of $300,000 in the current year.

     ______ D. The undersigned, if other than an individual, is an entity all of
               whose equity owners meet one of the tests set forth in (a)
               through (d) above (if relying on this category alone, each equity
               owner must complete a separate copy of this Agreement).

     ______ E. The undersigned is an entity, and is an "Accredited Investor" as
               defined in Rule 501(a) of Regulation D under the Act.

     (8) Entities. If the undersigned is not an individual but an entity, the
individual signing on behalf of such entity and the entity jointly and severally
agree and certify that:

     A.   The undersigned was not organized for the specific purpose of
          acquiring the Securities; and

     B.   This Agreement has been duly authorized by all necessary action on the
          part of the undersigned, has been duly executed by an authorized
          officer or representative of the undersigned, and is a legal, valid
          and binding obligation of the undersigned enforceable in accordance
          with its terms.

     (9) Legal Age. If the undersigned is an individual, the undersigned is of
legal age.

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     (10) Miscellaneous.

     A.   Manner in which title is to be held: (check one):

     _____    Individual Ownership
     _____    Joint Tenants with Right of Survivorship*
     _____    Partnership*
     _____    Tenants in Common*
     _____    Corporation
     _____    Trust
     _____    Other (describe):  ______________________________

     * Multiple signatures required.

     B.   The undersigned agrees that he/she understands the meaning and legal
          consequences of the agreements, representations and warranties
          contained herein, agrees that such agreements, representations and
          warranties shall survive and remain in full force and effect after the
          execution hereof and payment for the Securities, and further agrees to
          indemnify and hold harmless the Company, each current and future
          officer, director, employee, agent and shareholder from and against
          any and all loss, damage or liability due to, or arising out of, a
          breach of any agreement, representation or warranty of the undersigned
          contained herein.

     C.   This Agreement shall be construed and interpreted in accordance with
          Minnesota law without regard to conflict-of-law provisions.

     D.   The undersigned agrees to furnish to the Company, upon request, such
          additional information as may be deemed necessary to determine the
          undersigned's suitability as an investor.

INTENTIONAL SHORT PAGE

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INDIVIDUAL SUBSCRIBERS:                  ENTITY SUBSCRIBERS:
(including joint tenants and
tenants in common)

X_______________________________         X_________________________________
  Signature                                  Signature

----------------------------------       -----------------------------------
Name (typed or printed)

-----------------------------------      -----------------------------------
                                         Name (typed or printed) and title

-----------------------------------      ----------------------------------
Address, city, state and zip code        Name of entity

----------------------------------      ----------------------------------
Social security number

----------------------------------      ----------------------------------
Business telephone number

----------------------------------      ----------------------------------
Fax number                              Address, city, state and zip code

X_________________________________      ----------------------------------
 Signature (If more than one            Tax identification number
 individual subscriber)

-----------------------------------     ----------------------------------
Name (typed or printed)                 Telephone number

----------------------------------      ----------------------------------
                                        Fax number

----------------------------------      ----------------------------------
Address, city, state and zip code       Date signed

-----------------------------------
Social security number

-----------------------------------
Date signed

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                                   ACCEPTANCE

         This Securities Purchase Agreement and Letter of Investment Intent is
accepted as of this ____ day of April, 2001.

                                     INNOVATIVE GAMING CORPORATION OF AMERICA

                                     By:      _________________________________
                                     Name:    Roland M. Thomas
                                     Title:   Chief Executive Officer

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                                                                         ANNEX A

                             Form of Promissory Note

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                                                                         ANNEX B

                                 Form of Warrant

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