Loss narrows for American Wagering

Thursday, June 21, 2001 | 11:03 a.m.

The Las Vegas company that operates the 42-unit Leroy's Horse and Sports Place sports books reported a smaller loss for the first quarter.

American Wagering Inc. reported a net loss of $127,572, 2 cents a share, on revenues of $2.3 million for the quarter ended April 30. That compares with a loss of $699,798, 9 cents a share, on revenues of $2.9 million for the same quarter a year earlier.

The company attributed the improved results to cost-cutting in transportation and communications expenses and the closure of the company's MegaSports subsidiary in Australia.

Tim Lockinger, chief financial officer, said expenses were cut when four of the company's 214 employees left the company and weren't replaced.

Lockinger also said the company would be seeking an extension from the Nevada Gaming Commission on the sale of MegaSports after a deal with Forward Publishing Pty. Ltd. of Australia expired on Friday. Lockinger said Forward was unable to obtain the financing necessary to complete the deal in light of new Internet gaming regulations on the horizon in Nevada and Australia.

The Nevada Legislature approved Internet wagering, but there are still regulations to be drafted and uncertainty that federal officials would recognize their legality. And the Australian government is considering limits on Internet gambling.

The state Gaming Control Board already has extended deadlines for the sale of MegaSports the maximum three times allowable, which is why American Wagering must go to the commission for further extension.

American Wagering Chairman and Chief Executive Officer Victor Salerno said sports book revenues traditionally are down in the first and second quarters of the year and pick up during the third and fourth quarters during football season.