Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant.

As previously reported, American Wagering, Inc., a Nevada corporation (the "Company") is required under Nevada Gaming Control Board ("NGCB") Regulation 22.040 to maintain a reserve sufficient to cover any outstanding wagering liability, including unpaid winning tickets and telephone account deposits, of Leroy's Horse and Sports Place, Inc. ("Leroy's"), a wholly-owned subsidiary of the Company. On October 1, 2009, subject to the execution of definitive pledge agreements, Victor J. and Terina Salerno, the Company's Chief Executive Officer and General Counsel, respectively, agreed to pledge a certificate of deposit in the amount of $200,000 in favor of the NGCB, and Robert and Tracey Kocienski agreed to pledge certificates of deposit in the aggregate amount of $500,000, for the benefit of the Company to increase the Company's reserve balance to satisfy the requirements of Regulation 22.040. The pledged certificates of deposit will be accounted for as off-balance sheet arrangements. Any reserve amount may be released to the NGCB if it determines such funds are necessary to protect Leroy's wagering creditors. The Company has agreed to pay Mr. and Mrs. Salerno and Mr. and Mrs. Kocienski a fee in connection with the pledges equal to 1% per month of the pledged amounts. With the addition of the pledged certificates of deposit in the agreed upon amount of $700,000, the Company's current reserve balance is $2.6 million. No assurance can be given, however, that the reserve requirement will not increase in the future, or that the Company will be able to satisfy such increased reserve requirement.

This Form 8-K contains forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements regarding our expected financial position, business and financing plans. Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "should," "could," "seek," "intends," "plans," "estimates," "anticipates," or other comparable terms. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statement including those discussed herein and elsewhere in our Form 10-K for the year ended January 31, 2009, particularly under the heading "Risk Factors." We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We do not intend, and undertake no obligation to update our forward-looking statements to reflect future events or circumstances.

---