LV firm’s loss widens

Tuesday, Sept. 19, 2000 | 10:32 a.m.

American Wagering Inc. reported a loss of $937,000 for the quarter ending July 31, or 12 cents per share. The company lost $432,000, or 6 cents per share, in the year-ago quarter.

Revenues at the Las Vegas company fell 15 percent to $1.9 million.

American Wagering attributed the wider loss and lower revenues to a 54 percent decline in systems operations revenues, to $623,000. The company blamed this on the end of a period of new resort casinos opening in the Las Vegas area. Wagering revenues, however, increased $342,000 to $1.07 million.

Losses were reduced by $900,000 in litigation settlement revenue booked during the quarter, as well as a 52 percent decrease in operating expenses, which fell to $834,000.

"(AWI) is continuing to reduce company costs companywide in response to a slowdown of the opening of new casinos in Nevada and the current political climate which the company is operating in," said Chief Executive Vic Salerno. "Negotiations are continuing on the possible sale of our Australian Internet bookmaking operations."

In a settlement this summer, the company agreed to sell its Australian Internet wagering operations to end a disciplinary action against AWI by the Nevada state Gaming Control Board.

AWI is the operator of the Leroy's sports book chain, which operates 47 locations in Nevada. It also operates CBS, the state's largest provider of sports wagering equipment and software for casinos.