Sturgeon's is a full service hotel, casino and restaurant operation located adjacent to Interstate 80 in Lovelock, Nevada (approximately 90 miles east of Reno, Nevada).  The facility contains over 65,000 square feet including the following:

• Casino area with 120 gaming devices, bar, cashier's cage, count rooms, vault area, video arcade, lounge area and public restrooms.
• Restaurant area with total seating of 118, full kitchen, dish wash area, private dining or meeting area, storage areas and cashier's counter.
• Motel with 74 units, covered porte-cochere, registration desk and lobby, indoor swimming pool, housekeeping and storage areas, laundry room and manager's apartment.
• Banquet room known as the "Center Club" with stage, light and sound equipment, chairs, tables and storage areas.

The Sturgeon's acquisition is expected to be accretive to the Company's operating results.

Victor Salerno, the Company's CEO and President, said, "One of our core growth strategies has been to broaden our revenue base and diversify cash flows.  To this end, the Company recently formed AWI Gaming to search out and acquire hotel/casino operations that we believe will be accretive to overall operating results.  The acquisition of Sturgeon's Inn & Casino meets these criteria and brings this established operation under the American Wagering umbrella, which we believe will benefit Sturgeon's day-to-day operations and our shareholders."

ABOUT AMERICAN WAGERING, INC.:
American Wagering, Inc. is a publicly traded holding company that primarily operates through various wholly owned subsidiaries including, but not limited to, Leroy's Horse & Sports Place, Inc. ("Leroy's"), Computerized Bookmaking Systems, Inc. ("CBS"), AWI Manufacturing, Inc. ("AWIM"), and AWI Gaming, Inc. ("AWIG").  Leroy's owns and operates over 60 race/sports book outlets in the state of Nevada, CBS is the dominant supplier of sports wagering hardware/software to the Nevada gaming industry, and AWIM is a Nevada Gaming Commission licensed manufacturer / distributor and supplier of race/sports self-service wagering kiosks.  AWIG is a newly formed division with the goal of becoming the market leader in operating smaller hotel/casino properties.

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Action of 1995 and other applicable securities laws that reflect the Company's current views with respect to certain current/future events and financial performance. 

American Wagering, Inc.