Vegas firm reports loss

Wednesday, Sept. 25, 2002 | 11:24 a.m.

American Wagering Inc. reported a loss of $146,987, or 3 cents per share, for the six months ended July 31, compared to a profit of $120,154, or 1 cent per share, for the same period a year ago.

The Las Vegas-based company captured attention in 2000 when it was fined by the Nevada state Gaming Control Board for allowing its Australian subsidiary to accept illegal Internet bets. The company was also ordered to sell off its MegaSports Australia subsidiary.

American Wagering is now devoting more resources to the launch of two new business segments in the fourth quarter that will develop a self-service kiosk.

The company, which also owns Leroy's Horse and Sports Place, a Nevada-based race and sports book operation, has also added six Leroy's locations. Another is expected next month. The company also runs a subsidiary that supplies computerized sports wagering systems in Nevada.

"(T)he short-term decline in revenues has not materially affected our cash position and has not negatively impacted our long-term business plan to grow the revenues by examining additional sports related opportunities in the Nevada and international markets," American Wagering Chief Executive Officer Victor Salerno said.

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