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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001104659-01-501817.txt : 20010815
<SEC-HEADER>0001104659-01-501817.hdr.sgml : 20010815
ACCESSION NUMBER:		0001104659-01-501817
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20010630
FILED AS OF DATE:		20010814

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FULL HOUSE RESORTS INC
		CENTRAL INDEX KEY:			0000891482
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
		IRS NUMBER:				133391527
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20630
		FILM NUMBER:		1710486

	BUSINESS ADDRESS:	
		STREET 1:		2300 WEST SAHARA AVE
		STREET 2:		SUITE 450 BOX 23
		CITY:			LAS VEGAS
		STATE:			NV
		ZIP:			89102
		BUSINESS PHONE:		7022217800

	MAIL ADDRESS:	
		STREET 1:		2300 WEST SAHARA AVE
		STREET 2:		SUITE 450 BOX 23
		CITY:			LAS VEGAS
		STATE:			NV
		ZIP:			89102
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>j1511_10qsb.htm
<DESCRIPTION>10QSB
<TEXT>
<html>

<head>
<title>Prepared by MerrillDirect</title>
</head>

<body link=blue vlink=purple>

<div>

<div align=right><b><font size=2>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<div align=right><b><font size=2>

<hr size=1 width="100%" noshade color=black align=right>

</font></b></div>

<p align=center><b><font size=5>U.S. SECURITIES AND EXCHANGE
COMMISSION<br>
</font></b><b><font size=2>WASHINGTON, D.C. 20549</font></b></p>

<p align=center><b><font size=5>FORM 10&#150;QSB</font></b></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width=33 valign=top><b><font size=2 face=Wingdings>&#253;</font></b></td>
  <td width=701 valign=top><b><font size=2>QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
  SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001.</font></b></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p align=center><b><font size=2>OR</font></b></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width=33 valign=top><b><font size=2 face=Wingdings>o</font></b></td>
  <td width=701 valign=top><b><font size=2>TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
  SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
  ________________ TO ______________.</font></b></td>
 </tr>
</table>

<p align=center><b><font size=2>Commission
File No.&nbsp;&nbsp;&nbsp; 0&#150;20630</font></b></p>

<p align=center><b><font size=5>FULL HOUSE RESORTS, INC.<br>
</font></b><font size=2>(Exact name of small business issuer as
specified in its charter)</font><b><font size=5><br></font></b></p>

<div align=center><b><font size=5>

<hr size=1 width="25%" noshade color=black align=center>

</font></b></div>


<div align=center>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="50%" valign=top><font size=2>Delaware</font></td>
  <td  align=center width="50%" valign=top><font size=2>13&#150;3391527</font></td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top>
<hr size=1 width="25%" noshade color=black align=center></td>
  <td  align=center width="50%" valign=top>
<hr size=1 width="25%" noshade color=black align=center></td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top><font size=2>(State or other
  jurisdiction of</font></td>
  <td  align=center width="50%" valign=top><font size=2>(I.R.S. Employer</font></td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top><font size=2>incorporation or
  organization)</font></td>
  <td  align=center width="50%" valign=top><font size=2>Identification No.)</font></td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top>&nbsp;</td>
  <td  align=center width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top><font size=2>2300 W. Sahara Ave.</font></td>
  <td  align=center width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Suite 450,&nbsp; Box 23</font></td>
  <td  align=center width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top><font size=2>Las Vegas,&nbsp; Nevada</font></td>
  <td  align=center width="50%" valign=top><font size=2>89102</font></td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top>
<hr size=1 width="25%" noshade color=black align=center></td>
  <td  align=center width="50%" valign=top>
<hr size=1 width="25%" noshade color=black align=center></td>
 </tr>
 <tr>
  <td  align=center width="50%" valign=top><font size=2>(Address of principal
  executive offices)</font></td>
  <td  align=center width="50%" valign=top><font size=2>(zip code)</font></td>
 </tr>
</table>

</div>

<p align=center><font size=2>(702) 221&#150;7800<br></font></p>




<hr size=1 width="25%" noshade color=black align=center>


<p align=center><font size=2>(Registrant's telephone
number)</font></p>

<p><font size=2>Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.</font></p>

<p align=center><font size=2>Yes </font><font size=2 face=Wingdings>&#253;</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No </font><font size=2 face=Wingdings>o</font></p>

<p align=center><b><font size=2>APPLICABLE ONLY TO CORPORATE ISSUERS</font></b></p>

<p><font size=2>As
of August 11, 2001, Registrant had 10,340,380 shares of its $.0001 par value
common stock outstanding.</font></p>





<hr size=1 width="100%" noshade color=black align=right>






<hr size=2 width="100%" noshade color=black align=right>


<page>


<p align=center><b><font size=2>FULL HOUSE RESORTS, INC.<br>
TABLE OF CONTENTS</font></b></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="11%" valign=top>&nbsp;</td>
  <td  align=center width="11%" valign=top>&nbsp;</td>
  <td  align=center width="76%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top><font size=2>PART I.</font></td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2>Financial Information</font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top><font size=2>Item 1.</font></td>
  <td width="76%" valign=top><font size=2>Unaudited Condensed Consolidated Financial
  Statements</font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2>&nbsp;<a
  href="#UnauditedCondensedConsolidatedBalanceShe"   title="Click to goto UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS">Unaudited
  Condensed Consolidated Balance Sheets&nbsp;
  as of June 30, 2001 and December 31, 2000</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2><a
  href="#UnauditedCondensedConsolidatedBalanceShe"   title="Click to goto UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS">&nbsp;Unaudited
  Condensed Consolidated Statements of Operations&nbsp; for the three months ended June 30, 2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2><a
  href="#UnauditedCondensedConsolidatedStatements"   title="Click to goto UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS">&nbsp;Unaudited Condensed Consolidated Statements
  of Operations&nbsp; for the six months ended
  June 30, 2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2><a
  href="#UnauditedCondensedConsolidatedStatements"   title="Click to goto UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS">&nbsp;Unaudited
  Condensed Consolidated Statements of Cash Flows&nbsp; for the six months ended June 30, 2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2>&nbsp;<a
  href="#NotesToUnauditedCondensedConsolidatedFin"   title="Click to goto NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS">Notes
  to Unaudited Condensed Consolidated Financial Statements</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top><font size=2><a
  href="#Item2_ManagementsDiscussionAndAnalysisOf"   title="Click to goto Item 2.&#9; Management's Discussion and Analysis of Financial Condition and Results of Operations.">Item
  2.</a></font></td>
  <td width="76%" valign=top><font size=2><a
  href="#Item2_ManagementsDiscussionAndAnalysisOf"   title="Click to goto Item 2.&#9; Management's Discussion and Analysis of Financial Condition and Results of Operations.">Management's
  Discussion and Analysis of Financial&nbsp;
  Condition and Results of Operations</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top><font size=2><a href="#PartIiOtherInformation"   title="Click to goto PART II &#30; OTHER INFORMATION">PART II.</a></font></td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2><a href="#PartIiOtherInformation"   title="Click to goto PART II &#30; OTHER INFORMATION">Other Information</a></font></td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="11%" valign=top>&nbsp;</td>
  <td width="76%" valign=top><font size=2><a href="#Signatures"   title="Click to goto SIGNATURES">Signatures</a></font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p><b><font size=2>FULL
HOUSE RESORTS, INC. AND SUBSIDIARIES<br>
<a name=UnauditedCondensedConsolidatedBalanceShe>UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS</a><br></font></b></p>

<div align=right><b><font size=2>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="64%" colspan=3 valign=bottom><b><font size=2>ASSETS</font></b></td>
  <td  align=center width="15%" colspan=2 valign=bottom><b><font size=2>JUNE 30,<br></font></b><font size=2>&nbsp;<b>2001</b></font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><b><font size=2>DECEMBER 31,<br></font></b><font size=2>&nbsp;<b>2000</b></font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>CURRENT
  ASSETS:</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Cash
  and cash equivalents</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>484,778</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>455,143</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Receivables</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>283,212</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Prepaid
  expenses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>77,886</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>92,804</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  current assets</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>845,876</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>547,947</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="60%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>LAND
  HELD FOR DEVELOPMENT</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>4,621,670</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>4,621,670</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>FIXTURES
  AND EQUIPMENT, net</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>35,011</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>47,202</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>INVESTMENTS
  IN JOINT VENTURES</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>321,760</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,192,634</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>GOODWILL,
  net</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>126,579</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>379,713</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>NOTES
  RECEIVABLE</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>897,291</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,667,269</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>GAMING
  CONTRACT RIGHTS, net</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>5,508,994</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>DEFERRED
  TAX ASSET</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>72,924</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>294,900</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>DEPOSITS
  AND OTHER ASSETS</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,458,912</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,701,344</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom><font size=2>TOTAL</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>14,889,017</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>13,452,679</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>LIABILITIES
  AND STOCKHOLDERS' EQUITY</font></b></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><b><font size=2>&nbsp;</font></b></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><b><font size=2>&nbsp;</font></b></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>CURRENT
  LIABILITIES:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Accounts
  payable</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>15,240</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>18,106</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Payable
  to joint ventures</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>27,831</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Accrued
  expenses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>153,038</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>182,024</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  current liabilities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>168,278</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>227,961</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom><font size=2>LONG&#150;TERM
  DEBT, net of current portion</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>4,500,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>3,150,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>COMMITMENTS
  AND CONTINGENCIES</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>STOCKHOLDERS'
  EQUITY:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Cumulative
  preferred stock, par value $.0001, 5,000,000 shares authorized; 700,000
  shares issued and outstanding; aggregate liquidation preference of $3,990,000
  and $3,885,000</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>70</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;
  &nbsp; &nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>70</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;
  &nbsp; &nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Common
  stock, par value $.0001, 25,000,000 shares authorized; 10,340,380 shares
  issued and outstanding</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,034</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;
  &nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,034</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;
  &nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Additional
  paid in capital</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>17,429,889</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>17,429,889</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Accumulated
  deficit</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(7,210,254</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(7,356,275</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  stockholders' equity</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>10,220,739</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>10,074,718</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="64%" colspan=3 valign=bottom><font size=2>TOTAL</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>14,889,017</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>13,452,679 </font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td  align=right width="64%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=437></td>
  <td width=7></td>
  <td width=105></td>
  <td width=18></td>
  <td width=7></td>
  <td width=104></td>
  <td width=18></td>
 </tr>
</table>

<p><font size=2>See
notes to unaudited condensed consolidated financial statements.</font></p>

<page>


<p><b><font size=2>FULL
HOUSE RESORTS, INC. AND SUBSIDIARIES<br>
<a name=UnauditedCondensedConsolidatedStatements>UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</a><br></font></b></p>

<div align=right><b><font size=2>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="32%" colspan=5 valign=bottom><b><font size=2>THREE MONTHS ENDED</font></b><font size=2><br><b>JUNE
  30,</b></font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="17%" colspan=2 valign=bottom><b><font size=2>2001</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><b><font size=2>2000</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="17%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>OPERATING
  REVENUES:</font></td>
  <td  align=center width="17%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Joint
  ventures</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="16%" valign=bottom><font size=2>802,452</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom><font size=2>901,713</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Management
  fees</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>593,425</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="61%" valign=bottom><font size=2>Total
  operating revenues</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>1,395,877</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>901,713</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>OPERATING
  COSTS AND EXPENSES:</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Joint
  venture pre-opening costs</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>120,966</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Development
  costs</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>196,933</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>General
  and administrative</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>480,695</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>492,971</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="63%" colspan=2 valign=bottom><font size=2>Depreciation
  and amortization</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>182,736</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>132,797</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" valign=bottom bgcolor="#cceeff"><font size=2>Total
  operating costs and expenses</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>860,364</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>746,734</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>INCOME
  FROM OPERATIONS</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>535,513</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>154,979</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  expense</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(90,974</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(83,028</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Interest
  and other income</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>2,886</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>2,498</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE INCOME TAXES</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>447,425</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>74,449</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>INCOME
  TAX PROVISION</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>(254,643</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>(107,366</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>NET
  INCOME (LOSS)</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>192,782</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(32,917</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Less,
  undeclared dividends on cumulative preferred stock</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>52,500</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>52,500</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>NET
  INCOME (LOSS) APPLICABLE TO COMMON SHARES</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="16%" valign=bottom bgcolor="#cceeff"><font size=2>140,282</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font size=2>(85,417</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>NET
  INCOME (LOSS) PER COMMON SHARE, Basic and Diluted</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="16%" valign=bottom><font size=2>0.01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom><font size=2>(0.01</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Weighted
  average number of common shares</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom><font size=2>Outstanding;&nbsp;&nbsp; Basic and Diluted</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font size=2>10,340,380</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>10,340,380</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="65%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=446></td>
  <td width=7></td>
  <td width=119></td>
  <td width=15></td>
  <td width=7></td>
  <td width=87></td>
  <td width=14></td>
 </tr>
</table>

<p><font size=2>See
notes to unaudited condensed consolidated financial statements.</font></p>

<page>


<p><b><font size=2>FULL HOUSE RESORTS, INC. AND
SUBSIDIARIES<br>
<a name=Sixmonths>UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS</a><br></font></b></p>

<div align=right><b><font size=2>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="30%" colspan=5 valign=bottom><b><font size=2>SIX MONTHS ENDED<br>
  JUNE 30,</font></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><b><font size=2>2001</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><b><font size=2>2000 </font></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>OPERATING REVENUES:</font></td>
  <td  align=center width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=2 valign=bottom><font size=2>Joint
  ventures</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>1,806,765</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom><font size=2>1,767,313</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Management
  fees</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>593,425</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="64%" valign=bottom><font size=2>Total
  operating revenues</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>2,400,190</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,767,313</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>OPERATING
  COSTS AND EXPENSES:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=2 valign=bottom><font size=2 face=Times>Joint venture pre-opening costs</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>122,441</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>257,593</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Development
  costs</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>446,933</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=2 valign=bottom><font size=2>General
  and administrative</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>878,919</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>924,987</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Depreciation
  and amortization</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>315,398</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>265,615</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="64%" valign=bottom><font size=2>Total
  operating costs and expenses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>1,763,691</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>1,448,195</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  FROM OPERATIONS</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>636,499</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>319,118</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom><font size=2>Interest
  expense</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>(159,684</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>(165,306</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Interest
  and other income</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>6,181</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>5,904</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom><font size=2>INCOME
  BEFORE INCOMES TAXES</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>482,996</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>159,716</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  TAX PROVISION</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(336,976</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(195,022</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom><font size=2>NET
  INCOME (LOSS)</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>146,020</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>(35,306</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Less,
  undeclared dividends on cumulative preferred stock</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>105,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>105,000</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom><font size=2>NET
  INCOME (LOSS) APPLICABLE TO COMMON SHARES</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>41,020</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom><font size=2>(140,306</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>NET
  INCOME (LOSS) PER COMMON SHARE, Basic and Diluted</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>0.00</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom bgcolor="#cceeff"><font size=2>(0.01</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom><font size=2>Weighted
  average number of common shares Outstanding, Basic and Diluted</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font size=2>10,340,380</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;
  &nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>10,340,380</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;
  &nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=462></td>
  <td width=7></td>
  <td width=106></td>
  <td width=15></td>
  <td width=7></td>
  <td width=84></td>
  <td width=14></td>
 </tr>
</table>

<p><font size=2>See
notes to unaudited condensed consolidated financial statements.</font></p>

<page>


<p><b><font size=2>FULL
HOUSE RESORTS, INC. AND SUBSIDIARIES<br>
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br></font></b></p>

<div align=right><b><font size=2>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="30%" colspan=5 valign=bottom><b><font size=2>SIX MONTHS ENDED<br>
  JUNE 30,</font></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><b><font size=2>2001</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom><b><font size=2>2000</font></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom><div><b><font size=2><hr size=1 width="100%" noshade color=black align=left></font></b></div></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH
  FLOWS FROM OPERATING ACTIVITIES:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom><font size=2>146,020</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom><font size=2>(35,306</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Adjustments
  to reconcile net income (loss) to net cash provided by operating activities:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="64%" colspan=3 valign=bottom><font size=2>Depreciation
  and amortization</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>315,398</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>265,615</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Amortization
  of deferred compensation expense</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>27,719</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="64%" colspan=3 valign=bottom><font size=2>Expired
  purchase option</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>250,000</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Equity
  in income of joint ventures</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(1,684,324</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(1,509,720</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="64%" colspan=3 valign=bottom><font size=2>Distributions
  from joint ventures</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>1,529,462</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>1,419,154</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;Changes in operating assets and
  liabilities:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Receivables</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>(194,395</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>34,057</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Prepaid
  expenses</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>14,918</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>17,713</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Other
  assets</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>(7,567</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>(95,857</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Deferred
  taxes</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>221,976</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>113,812</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="62%" colspan=2 valign=bottom><font size=2>Accounts
  payable and accrued expenses</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>(31,853</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>(61,688</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  cash provided by operating activities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>559,635</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>175,499</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom><font size=2>CASH
  FLOWS FROM INVESTING ACTIVITIES:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Purchases
  of 50% joint venture interest</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(1,800,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom><font size=2>Advances
  on note receivable</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>(80,000</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Deposits
  on purchase options</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(50,000</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom><font size=2>Receivables
  from joint ventures</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>(71,393</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  cash used in investing activities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(1,880,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(121,393</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom><font size=2>CASH
  FLOWS FROM FINANCING ACTIVITIES:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Proceeds
  from line of credit</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,800,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom><font size=2>Repayment
  of line of credit</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>(450,000</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>(250,000</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  cash provided by (used in) financing activities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,350,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(250,000</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom><font size=2>NET
  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font size=2>29,635</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font size=2>(195,894</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH
  AND CASH EQUIVALENTS, BEGINNING OF PERIOD</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>455,143</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>438,800</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom><font size=2>CASH
  AND CASH EQUIVALENTS, END OF PERIOD</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom><font size=2>484,778</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom><font size=2>242,906</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=436></td>
  <td width=7></td>
  <td width=97></td>
  <td width=16></td>
  <td width=7></td>
  <td width=92></td>
  <td width=14></td>
 </tr>
</table>

<p><font size=2>See
notes to unaudited condensed consolidated financial statements.</font></p>

<page>


<p><b><font size=2>FULL HOUSE RESORTS, INC. AND
SUBSIDIARIES<br>
<a name=NotesToUnauditedCondensedConsolidatedFin>NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</a><br></font></b></p>

<div align=right><b><font size=2>

<hr size=2 width="100%" noshade color=black align=right>

</font></b></div>


<p><b><font size=2>1.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p>

<dir>
<p><b><i><font size=2>Interim Condensed Consolidated Financial
Statements -</font></i></b><font size=2> The interim condensed
consolidated financial statements of Full House Resorts, Inc. (the
&quot;Company&quot;) included herein reflect all adjustments which are, in the
opinion of management, necessary to present fairly the financial position and
results of operations for the interim periods presented.&nbsp; All such adjustments are of a normal recurring
nature. Certain information and note disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been omitted pursuant to the rules and
regulations of the Securities and Exchange Commission.</font></p>
</dir>

<dir>
<p><font size=2>These
unaudited condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's Annual Report on Form 10&#150;KSB for the year ended
December 31, 2000.&nbsp; The results of
operations for the period ended June 30, 2001 are not necessarily indicative of
the results to be expected for the year ending December 31, 2001.</font></p>
</dir>

<dir>
<p><b><i><font size=2>Consolidation &#150;</font></i></b><font size=2>
The unaudited condensed consolidated financial statements include the accounts
of the Company and all its majority&#150;owned subsidiaries. Prior to March 31, 2001, we had four joint
ventures with GTECH that were accounted for using the equity method.&nbsp; Three of these joint ventures are now wholly
owned by the Company, and accordingly are no longer accounted for using the
equity method.&nbsp; All material
intercompany accounts and transactions have been eliminated.</font></p>
</dir>

<dir>
<p><b><i><font size=2>Reclassifications</font></i></b><b><font size=2> - </font></b><font size=2>Certain
prior year amounts have been reclassified to conform with the current year
presentation.</font></p>
</dir>

<p><b><font size=2>2.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>RECENT ACCOUNTING PRONOUNCEMENTS</b></font></p>

<dir>
<p><font size=2>In
July 2001, the Financial Accounting Standards Board issued SFAS No. 141,
&#147;Business Combinations&#148; and SFAS No. 142, &#147;Goodwill and Other Intangible
Assets.&#148;&nbsp; SFAS 141 prohibits the pooling
of interests method of accounting for business combinations initiated after
June 30, 2001.&nbsp; SFAS 142, which will be
effective January 2002, requires, among other things, the discontinuance of
goodwill amortization.&nbsp; In addition, the
standard includes provisions for the reclassification of certain existing intangibles
as goodwill, reassessment of the useful lives of existing intangibles, and
ongoing assessments of potential impairment of existing goodwill.</font></p>
</dir>

<dir>
<p><font size=2>As
of June 30, 2001 the Company had goodwill, net of accumulated amortization, of
$126,579, which will be fully amortized in our third quarter.&nbsp; In addition, existing intangibles consist of
net Gaming Contract Rights of $5,508,994 and Hard Rock licensing and
development rights of $2,367,880 included in Deposits and Other Assets.&nbsp; The Company has not yet determined the
impact, if any, that this statement will have on its consolidated financial
position or results of operations.</font></p>
</dir>

<page>


<p><b><font size=2>3.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>JOINT
VENTURE ACQUISITION</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size=2>On
March 30, 2001 we acquired GTECH&#146;s 50% interest in three joint venture projects
that had been equally owned by the two companies: Gaming Entertainment, LLC,
owner of an agreement continuing through August 2002, with the Coquille Tribe,
which conducts gaming at The Mill Casino in Oregon; Gaming Entertainment
Michigan, LLC, owner of a Management Agreement with the Nottawaseppi Huron Band
of Potawatomi to develop and manage a gaming facility near Battle Creek; and
Gaming Entertainment California, LLC owner of a Management Agreement with the
Torres-Martinez Band of Desert Cahuilla Indians to develop and manage a gaming
facility near Palm Springs.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
purchase price was $1,800,000, and was funded through our existing credit
facility.&nbsp; As part of this transaction,
GTECH has extended the due date of our $3,000,000 promissory note from January
25, 2001 until January 25, 2002, with interest at prime.&nbsp; Also as part of this transaction, GTECH is
no longer required to provide the necessary financing for the two development
projects (Michigan and California) that we acquired.&nbsp; This transaction did not include our other joint venture with
GTECH, Gaming Entertainment (Delaware), LLC, owner of a management agreement
continuing through 2011, to manage Midway Slots &amp; Simulcast in Harrington,
Delaware.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
addition to the gaming contract rights, we acquired the other 50% interest in a
note receivable from the Michigan tribe in the amount of $396,146.&nbsp; The excess purchase price over the fair
value of assets acquired was allocated to the gaming contract rights acquired
based on the discounted present value of expected future cash flows.&nbsp; The excess purchase price of $1,403,854 was
allocated as follows:</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="58%" valign=bottom>&nbsp;</td>
  <td  align=center width="20%" colspan=2 valign=bottom><font size=2>Value</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" valign=bottom><font size=2>Amortization<br></font><font size=2>&nbsp;Term</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="58%" valign=bottom>&nbsp;</td>
  <td  align=center width="20%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="58%" valign=bottom bgcolor="#cceeff"><font size=2>Michigan contract</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff"><font size=2>1,141,682</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>8.0
  years</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="58%" valign=bottom><font size=2>California contract</font></td>
  <td  align=right width="20%" colspan=2 valign=bottom><font size=2>182,776</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>8.0
  years</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="58%" valign=bottom bgcolor="#cceeff"><font size=2>Oregon contract</font></td>
  <td  align=right width="20%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>79,396</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>1.4
  years</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="58%" valign=bottom>&nbsp;</td>
  <td  align=right width="20%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="58%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="19%" valign=bottom><font size=2>1,403,854</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><b><font size=2>4.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>GAMING
CONTRACT RIGHTS</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As a
result of the GTECH acquisition, the three joint ventures that had previously
been accounted for using the equity method are now wholly owned consolidated
entities.&nbsp; A substantial portion of our
investment in these joint ventures was comprised of previously contributed
Michigan gaming rights of $4,155,213 that we acquired in 1995.&nbsp; Now that these are wholly-owned consolidated
entities, these previously contributed rights are reflected in Gaming Contract
Rights, along with the rights acquired in the GTECH acquisition of
$1,403,854.&nbsp; The Investments in Joint
Ventures on the balance sheet now reflects our ownership interest in only the
Delaware LLC.</font></p>

<page>


<p><b><font size=2>5.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>&nbsp;&nbsp;&nbsp;&nbsp; JOINT VENTURE INVESTMENTS</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Through
March 30, 2001 we had four joint ventures with GTECH.&nbsp; The Delaware venture, which continues as a joint venture with
GTECH, manages a slot operation at Harrington Raceway in Harrington.&nbsp; As of March 31, 2001, the other three
previous joint ventures became wholly owned by us, and accordingly are no
longer accounted for using the equity method.&nbsp;
The Oregon venture developed the Mill Casino in North Bend for the
Coquille Indian Tribe.&nbsp;&nbsp; The Michigan
venture, which has a management agreement with a Tribe in Battle Creek, and the
California venture, which has an agreement with a Tribe in Thermal are both
still in the development stage.&nbsp;
Successful development and, ultimately, sustaining profitable operations
is dependent upon future events, including appropriate regulatory approvals and
adequate market demand.&nbsp; These two
ventures have not generated any revenues, and the costs incurred to date relate
to pre-opening expenses such as payroll, legal, and consulting.</font></p>

<p><font size=2>&nbsp;</font></p>

<p align=center><font size=2>SUMMARY
INFORMATION FOR THE THREE MONTH PERIODS ENDED JUNE 30,</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="86%">
 <tr>
  <td  align=center width="46%" valign=bottom><b><font size=2>2001</font></b></td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Delaware</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><font size=2>Oregon</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Michigan</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>California</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="46%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>4,605,502</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Income
  from operations</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>1,604,905</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  income</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,604,905</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=289></td>
  <td width=8></td>
  <td width=64></td>
  <td width=9></td>
  <td width=11></td>
  <td width=65></td>
  <td width=13></td>
  <td width=8></td>
  <td width=56></td>
  <td width=16></td>
  <td width=13></td>
  <td width=61></td>
  <td width=12></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="86%">
 <tr>
  <td  align=center width="46%" valign=bottom><b><font size=2>2000</font></b></td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Delaware</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Oregon</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font size=2>Michigan</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>California</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="46%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>3,822,672</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>588,504</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>1,221,509</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>581,916</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font size=2>(211,550</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>(30,382</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,221,509</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>581,916</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(211,550</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(30,382</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=289></td>
  <td width=7></td>
  <td width=64></td>
  <td width=14></td>
  <td width=7></td>
  <td width=65></td>
  <td width=15></td>
  <td width=7></td>
  <td width=54></td>
  <td width=12></td>
  <td width=7></td>
  <td width=66></td>
  <td width=16></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p align=center><font size=2>SUMMARY
INFORMATION FOR THE SIX MONTH PERIODS ENDED JUNE 30,</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="86%">
 <tr>
  <td  align=center width="46%" valign=bottom><b><font size=2>2001</font></b></td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Delaware</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Oregon</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Michigan</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>California</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="46%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>8,570,331</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>570,137</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>3,048,797</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>564,734</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(197,522</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>(47,360</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>3,048,797</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>564,734</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(197,522</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(47,360</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=289></td>
  <td width=6></td>
  <td width=66></td>
  <td width=10></td>
  <td width=7></td>
  <td width=67></td>
  <td width=11></td>
  <td width=7></td>
  <td width=58></td>
  <td width=16></td>
  <td width=7></td>
  <td width=63></td>
  <td width=16></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="85%">
 <tr>
  <td  align=center width="46%" valign=bottom><b><font size=2>2000</font></b></td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Delaware</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>Oregon</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font size=2>Michigan</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font size=2>California</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="46%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>6,965,199</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>1,144,376</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>2,396,838</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>1,137,787</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font size=2>(471,148</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font size=2>(44,038</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,396,838</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,137,787</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(471,148</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(44,038</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=287></td>
  <td width=7></td>
  <td width=66></td>
  <td width=10></td>
  <td width=7></td>
  <td width=66></td>
  <td width=11></td>
  <td width=7></td>
  <td width=59></td>
  <td width=16></td>
  <td width=7></td>
  <td width=64></td>
  <td width=13></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p><b><font size=2>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SEGMENT INFORMATION</font></b></p>

<dir>
<p><font size=2>Since
the GTECH acquisition transaction, we now view our business in three primary
business segments.&nbsp; The Operations
segment includes the performance of the Delaware and Oregon projects.&nbsp; The Development segment includes costs
associated with our activities in Michigan, California, and Mississippi.&nbsp; The Corporate segment reflects the
management and administrative expenses of the business.</font></p>
</dir>

<p><font size=2>&nbsp;</font></p>

<p align=center><font size=2>SUMMARY
INFORMATION FOR THE THREE MONTH PERIODS ENDED JUNE 30,</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="27%" colspan=2 valign=bottom><b><font size=2>2001</font></b></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Operations</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Development</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Corporate</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Consolidated</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>1,395,877</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>1,395,877</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Pre-opening
  / Development costs</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>196,933</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>196,933</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,339,678</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(376,960</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(427,205</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>535,513</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>744,238</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(271,406</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(280,050</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>192,782</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="27%" colspan=2 valign=bottom><b><font size=2>2000</font></b></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Operations</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Development</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Corporate</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Consolidated</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>901,713</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>901,713</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Pre-opening
  / Development costs</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>120,966</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>120,966</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>859,524</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(205,344</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(499,201</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>154,979</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>430,434</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(135,527</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(327,824</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(32,917</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p align=center><font size=2>SUMMARY
INFORMATION FOR THE SIX MONTH PERIODS ENDED JUNE 30,</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="26%" colspan=2 valign=bottom><b><font size=2>2001</font></b></td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Operations</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Development</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Corporate</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Consolidated</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>2,400,190</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>2,400,190</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Pre-opening
  / Development costs</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>569,384</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>569,384</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>2,301,802</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(833,779</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(831,524</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>636,499</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>1,249,308</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(558,530</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(544,758</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>146,020</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="26%" colspan=2 valign=bottom><b><font size=2>2000</font></b></td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Operations</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Development</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2 face=Times>Corporate</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font size=2>Consolidated</font></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Revenues</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>1,767,313</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font size=2>1,767,313</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Pre-opening
  / Development costs</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>257,593</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>257,593</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="25%" valign=bottom bgcolor="#cceeff"><font size=2>Income
  (loss) from operations</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>1,682,935</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(426,349</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>(937,468</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>319,118</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="25%" valign=bottom><font size=2>Net
  income (loss)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>846,571</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(264,919</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(616,958</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font size=2>(35,306</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
</table>


<p><font size=2>&nbsp;</font></p>

<page>


<p>&nbsp;</p>

<p><a name="Item2_ManagementsDiscussionAndAnalysisOf"><b><font size=2>Item 2.</font></b></a><font size=2> <b> Management's Discussion and Analysis of Financial
Condition and Results of Operations.</b></font></p>

<dir>
<p><b><font size=2>Results
of Operations for the Three and Six Months Ended June 30, 2001 Compared to
Three and Six Months Ended June 30, 2000</font></b></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Revenues.&nbsp; </b>As a result of the acquisition of GTECH&#146;s interest in
three joint venture projects, our classification of revenues is not directly
comparable to prior periods.&nbsp; The
revenues related to our Delaware contract continue to be reported as joint
venture revenue, but as of March 31, 2001, the revenue related to the Oregon
contract is now reported as management fees.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating revenues increased
$494,164, or 55% for the three month period and $632,877 or 36% for the six
month period as compared to the same periods in 2000.&nbsp; These increases are due to improved performance in Delaware and
the acquisition of the additional 50% interest in Oregon.</font></p>

<p><b><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delaware
Joint Venture. </font></i></b><font size=2>&nbsp;Our share of income from the Delaware joint
venture was $802,452, an increase of $191,697, for the three month period, and
$1,524,398, an increase of $325,979 for the six month period.&nbsp; On May 11, 2000 we opened an expansion of
the Harrington facility, and these revenue increases are primarily attributable
to the increased gaming capacity.&nbsp; As we
begin the third quarter our comparisons will no longer be driven by this
additional capacity.</font></p>

<p><b><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oregon.</font></i></b><font size=2>&nbsp; Our management fees from the Oregon contract
were $593,425 for the three month period compared to joint venture revenue of
$290,958, in the prior year.&nbsp; Oregon
related revenues for the six month period were $875,792 compared to $568,894 in
the prior year.&nbsp; These increases
primarily reflect the increase in our ownership percentage.&nbsp; Additionally, continued growth in the market
contributed to revenue increases at the facility that more than offset the fee
percentage reduction from 12% of revenue to 11% in accordance with the
management agreement.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Cost and Expenses. </b>As a
result of our acquisition of GTECH&#146;s interest in three joint venture projects,
our classification of expenses is not directly comparable to prior
periods.&nbsp; The expenses related to our
California and Michigan projects, which had been reported as joint venture
pre-opening costs, as of March 31, 2001 are now reported as development costs.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Pre-opening and Development</b>.&nbsp; Total development related costs (Joint
venture pre-opening costs and Development costs) for the California and
Michigan projects were $196,933 compared to $120,966 for the three month
period, and $319,374 compared to $257,593 for the six month period.&nbsp; The majority of these costs were due to
increased activities related to the Michigan venture with the Huron Potawatomi
Tribe in Battle Creek.&nbsp; These costs were
primarily for legal and consulting fees to assist the Tribe in obtaining
suitable land and complying with the requirements of the Indian Gaming
Regulatory Act.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the three month periods
there were no other development costs.&nbsp;
For the six month periods, we expensed $250,000 in the first quarter of
2001 related to the expiration of a land purchase option in Biloxi Mississippi
that we chose not to exercise or renew.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General and Administrative Expenses<i>.</i></b>&nbsp;&nbsp; General and administrative expenses
decreased by $12,276 and $46,068 for the respective three and six month periods
ended June 30, 2001.&nbsp; These decreases
are primarily due to reduced payroll expenses.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><font size=2>Depreciation
and Amortization.&nbsp;&nbsp;&nbsp;&nbsp; </font></b><font size=2>Amortization
expense increased $50,073 for both the three and six month periods which
reflects the amortization of the Gaming Rights acquired in the GTECH
acquisition transaction which is described in Notes 3 and 4 of the condensed
consolidated financial statements.&nbsp;
Goodwill amortization was $126,567 and $253,134 for the respective three
and six month periods.&nbsp; The remaining
goodwill balance of $126,579 will be expensed in the third quarter of 2001.</font></p>

<p><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Expense<i>.</i></font></b><font size=2>&nbsp; Interest expense increased by $7,946 for the
three month period and decreased by $5,622 for the six month period.&nbsp; These changes are a result of changes in the
amounts outstanding under our bank line, coupled with a decrease in interest
rates.</font></p>

<p><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Other Income<i>.</i></font></b><font size=2>&nbsp; Interest and other income was comparable in
both the three and six&nbsp; month periods
and is primarily due to earnings on invested cash balances.</font></p>

<p><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Tax Provision<i>.</i></font></b><font size=2>&nbsp;&nbsp; Income tax expense increased by $147,277
and $141,954 for the respective three and six month periods.&nbsp; These increases are primarily due to
increased earnings.&nbsp; The effective tax
rate reflects a combination of state taxes on&nbsp;
joint venture earnings combined with the tax effect of non-deductible
amortization expenses.&nbsp; For federal tax
purposes we have net operating loss carryforwards of approximately $1,335,000
which may be carried forward to offset future taxable income.&nbsp; The loss carryforwards expire in 2010
through 2019.&nbsp; The availability of the
loss carryforwards may be limited in the event of a significant change in
ownership of the Company or that of our subsidiaries.</font></p>

<p><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liquidity and Capital Resources</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At June 30, 2001, we had cash and
cash equivalents of $484,778.&nbsp; For the
six months ended June 30, 2001, cash of $559,635 was provided by operating
activities, as compared to $175,499 in the prior year period.&nbsp; The increase is primarily due to increased
earnings.&nbsp; Net cash used in investing
activities was $1,880,000, primarily for the GTECH acquisition transaction.&nbsp; In the prior year period, $121,393 was used
in investing activities, for options and deposits related to the Biloxi project
as well as joint venture activities in Michigan.&nbsp; Financing activities consisted of draws and repayments on our
credit line.&nbsp;&nbsp; A draw of $1,800,000 was
used to fund the GTECH acquisition transaction.&nbsp; As a result of these factors, there was a net increase in cash
and cash equivalents of $29,635 during the first six months of 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
March 30, 2001, we acquired GTECH&#146;s 50% interest in three joint venture
projects that had been equally owned by the two companies: Gaming Entertainment,
LLC, owner of an agreement continuing through August 2002, with the Coquille
Tribe, which conducts gaming at The Mill Casino in Oregon; Gaming Entertainment
Michigan, LLC, owner of a Management Agreement with the Nottawaseppi Huron Band
of Potawatomi to develop and manage a gaming facility near Battle Creek; and
Gaming Entertainment California, LLC owner of a Management Agreement with the
Torres-Martinez Band of Desert Cahuilla Indians to develop and manage a gaming
facility near Palm Springs.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
purchase price was $1,800,000, and was funded through our existing credit
facility.&nbsp; As part of this transaction,
GTECH has extended the due date of our $3,000,000 promissory note from January
25, 2001 until January 25, 2002, with interest at prime. &nbsp;Also as part of this transaction, GTECH is no
longer required to provide the necessary financing for the two development
projects (Michigan and California) that we acquired.&nbsp; Since we do not have the financial resources to fund these
projects alone, we are actively pursuing alternative means of financing these
developments.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>This
transaction did not include our other joint venture with GTECH, Gaming
Entertainment (Delaware), LLC, owner of a management agreement continuing
through 2011, to manage Midway Slots &amp; Simulcast in Harrington,
Delaware.&nbsp; As a result of this
continuing agreement with GTECH, our receipt of revenues from the operations of
our Delaware joint venture project is governed by the terms of the related
agreement.&nbsp; It provides that net cash flow
(after certain deductions) is to be distributed monthly to Full House and
GTECH.&nbsp; While we do not believe that
this arrangement will adversely impact our liquidity, our continuing cash flow
is dependent on the operating performance of this joint venture, and the
ability to receive monthly distributions</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Our long-term debt represents the
$3,000,000 balance on the GTECH promissory note and $1,500,000 due under the
bank line of credit, which was used to fund the GTECH acquisition.&nbsp; We expect to repay these amounts with a
combination of cash from operations and leveraging our ownership of the gaming
contracts acquired.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We have a $2 million line of credit
with Coast Community bank in Mississippi. The line bears interest at prime plus
&#189;%, with interest payable monthly.&nbsp; Any
outstanding principal is due at maturity in February 2002.&nbsp; At June 30, 2001, there was $1,500,000
outstanding at a rate of 8%.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As part of the Michigan and
California management agreements with the tribes, we have advanced funds for
tribal operations and the construction of a tribal community center.&nbsp; The Notes Receivable is attributable to this
funding, and the repayment obligation is dependent on the future profitable
operation of the tribes&#146; gaming enterprise.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In November 1998, we executed a
series of agreements with Hard Rock Cafe International related to the proposed
development project in Biloxi, Mississippi.&nbsp;
Pursuant to a licensing agreement, the Company has the right to develop
and operate a Hard Rock Casino in Biloxi.&nbsp;
We have paid a territory fee of $2,000,000.&nbsp; In September 1998, the Company and Allen E. Paulson formed a
limited liability company, equally owned, for the purpose of developing this
project.&nbsp; Mr. Paulson agreed to
contribute a gaming vessel (the former Treasure Bay barge in Tunica, MS.), and
we agreed to contribute our rights to the Hard Rock agreements.&nbsp; In June 2001, we agreed to dissolve this
company with each party retaining their respective rights and assets.&nbsp; We continue to pursue the development of a
Hard Rock in Biloxi.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of June 30, 2001, Full House had
cumulative undeclared and unpaid dividends in the amount of $1,890,000 on the
700,000 outstanding shares of its 1992&#150;1 Preferred Stock. Such dividends
are cumulative whether or not declared, and are currently in arrears.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report contains certain
forward looking statements made pursuant to the Private Securities Litigation
Reform Act of 1995, such as statements relating to our development plans and
expectations, and financing availability.&nbsp;
These statements are subject to risks and uncertainties discussed in
this report and in our other filings with the Securities and Exchange
Commission, which could cause actual results or timing to differ materially
from that implied by such statements.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Quantitative
Disclosure About Market Risk.&nbsp; </b>Market
risk is the risk of loss from changes in market rates or prices, such as
interest rates and commodity prices.&nbsp; We
are exposed to market risk in the form of changes in interest rates and the
potential impact such changes may have on our variable rate debt.&nbsp; We have not invested in derivative based
financial instruments.</font></p>

<page>


<p><a name=PartIiOtherInformation><b><font size=2>PART II
&#150; OTHER INFORMATION</font></b></a></p>

<p><font size=2>&nbsp;</font></p>

<p><b><font size=2>Item 1.&nbsp; Legal Proceedings</font></b></p>

<dir>
<p><font size=2>In
the Allen E. Paulson et al. vs. Jefferies &amp; Company, Inc., et al.
litigation filed in U.S. District Court for the Central District of California,
Case No. 98-2644 FMC, which included a Third Party Complaint against the
Company, we reached a de minimis settlement in July with both Jefferies and
Paulson releasing us from this litigation.</font></p>
</dir>

<p><b><font size=2>Item 3.&nbsp; Defaults upon Senior Securities</font></b></p>

<dir>
<p><font size=2>As
of June 30, 2001, cumulative dividends were $1,890,000, which were undeclared,
unpaid and were in arrears, with respect to our Series 1992&#150;1 Preferred
Stock, which class ranks prior to our Common Stock with regard to dividend and
liquidation rights.</font></p>
</dir>

<h5><b><font size=2>Item 4.&nbsp;
Submission of Matters to a Vote of Security Holders</font></b></h5>

<dir>
<p><font size=2>We
held our Annual Meeting of Stockholders on May 30, 2001.&nbsp; A total of 9,473,152 shares (86%) were
represented by proxy or in person, and cast their votes on the following
matters:</font></p>
</dir>

<table border=0 cellspacing=0 cellpadding=0 width="75%">
 <tr>
  <td  align=center width="70%" valign=bottom><font size=2>Election of Directors:</font></td>
  <td  align=center width="12%" valign=bottom><b><font size=2>FOR</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="14%" valign=bottom><b><font size=2>AGAINST</font></b></td>
  <td  align=center width="0%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="70%" valign=bottom bgcolor="#cceeff"><font size=2>Lee
  A. Iacocca</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font size=2>9,467,167</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>5,985</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="70%" valign=bottom><font size=2>William
  P. McComas</font></td>
  <td  align=right width="12%" valign=bottom><font size=2>9,467,167</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>5,985</font></td>
  <td width="0%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="70%" valign=bottom bgcolor="#cceeff"><font size=2>Ronald
  K. Richey</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font size=2>9,467,167</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font size=2>5,985</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="70%" valign=bottom><font size=2>Michael
  P. Shaunnessy</font></td>
  <td  align=right width="12%" valign=bottom><font size=2>9,467,167</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" valign=bottom><font size=2>5,985</font></td>
  <td width="0%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ratification of Deloitte &amp;
Touche LLP to serve as independent accountants for the current year:</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>FOR</b>: 9,465,167&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>AGAINST</b>:&nbsp;&nbsp; 4,385&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>ABSTAIN</b>:&nbsp;&nbsp; 3,600</font></p>

<p><font size=2>&nbsp;</font></p>

<p><b><font size=2>Item 6.&nbsp; Exhibits and
Reports on Form 8-K</font></b></p>

<dir>
<p><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits&nbsp; - None</font></p>
</dir>

<dir>
<p><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reports on Form 8&#150;K;</font></p>
</dir>

<dir><dir>
<p><font size=2>The
Company filed current reports dated April 14, 2001 and June 22, 2001 related to
the acquisition of GTECH Corporation&#146;s interest in three joint ventures that
had been equally owned by the parties.</font></p>
</dir></dir>

<page>


<p>&nbsp;</p>

<p align=center><a name=Signatures><b><font size=2>SIGNATURES</font></b></a></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the
Securities Exchange Act of 1934, as amended, the Company has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="81%">
 <tr>
  <td width="41%" valign=top>&nbsp;</td>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><b><font size=2>FULL HOUSE RESORTS, INC.</font></b></td>
 </tr>
 <tr>
  <td width="41%" valign=top><font size=2>Date:&nbsp;
  August 14, 2001</font></td>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="53%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="41%" valign=top>&nbsp;</td>
  <td width="5%" valign=top><font size=2>By</font></td>
  <td width="53%" valign=top><font size=2>&nbsp;&nbsp; /s/
  MICHAEL P. SHAUNNESSY</font></td>
 </tr>
 <tr>
  <td width="41%" valign=top>&nbsp;</td>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="53%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td width="41%" valign=top>&nbsp;</td>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>&nbsp;Michael P. Shaunnessy, Executive V.P. &#150; Finance</font></td>
 </tr>
 <tr>
  <td width="41%" valign=top>&nbsp;</td>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="53%" valign=top><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;
  (Principal Accounting and Financial Officer)</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

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