Earnings fall for LV company

Thursday, Dec. 20, 2001 | 11:17 a.m.

American Wagering Inc. reported significant declines in revenue and net income for the quarter ending Oct. 31.

The Las Vegas-based company posted net income of $115,000, or 1 cent per share, for the third quarter of 2001. This compares to net income of $507,000, or 6 cents per share, in the year-ago quarter. Revenue fell 8 percent to $2.96 million.

The year-ago quarter included a one-time gain of $415,000 from the settlement of a lawsuit, and a $173,000 one-time loss from discontinued operations.

Wagering, computer system and keno revenues all declined during the quarter; the company said this was partly the result of the cancellation of numerous sports and racing events after Sept. 11.

The delay of the Super Bowl until February will push that event out of American Wagering's fourth quarter, and will likely result in lower-than-projected revenue for the quarter ending Jan. 31, the company said.

"The long-term economic impact on the Southern Nevada economy and the company's business cannot be predicted at this time but may be substantial," the company said.