Forward-Looking Statements, Business Environment and Risk Factors

This quarterly report on Form 10-Q 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 (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. In addition, Century Casinos, Inc. (together with its subsidiaries, the "Company") may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements as to industry trends and future expectations of the Company and other matters that do not relate strictly to historical facts and are based on certain assumptions by management at the time such statements are made. These statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," or "continue," and similar expressions or variations. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2011. We caution the reader to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

References in this item to "we," "our," or "us" are to the Company and its subsidiaries on a consolidated basis unless the context otherwise requires. The term "CAD" refers to Canadian dollars. Certain other terms are defined in Item 1.

Amounts presented in this Item 2 are rounded. As such, rounding differences could occur in period over period changes and percentages reported throughout this Item 2.

OVERVIEW

Since our inception in 1992, we have been primarily engaged in developing and operating gaming establishments and related lodging, restaurant and entertainment facilities. Our primary source of revenue is from the net proceeds of our gaming machines and tables, with ancillary revenue generated from the hotel, restaurant, bowling and entertainment facilities that are a part of the casinos.

We currently own, operate and manage the following casinos through wholly-owned subsidiaries:

- The Century Casino & Hotel in Edmonton, Alberta, Canada;
- The Century Casino Calgary, Alberta, Canada;
- The Century Casino & Hotel in Central City, Colorado; and
- The Century Casino & Hotel in Cripple Creek, Colorado.

We also operate 12 ship-based casinos onboard four cruise lines: Oceania Cruises, TUI Cruises, Windstar Cruises and Regent Seven Seas Cruises. The following table summarizes the cruise lines for which we have entered into agreements and the associated ships on which we operate ship-based casinos.

Cruise Line               Ship
Oceania Cruises           Regatta
Oceania Cruises           Nautica
Oceania Cruises           Insignia*
Oceania Cruises           Marina
Oceania Cruises           Riviera
TUI Cruises               Mein Schiff 1
TUI Cruises               Mein Schiff 2
Windstar Cruises          Wind Surf
Windstar Cruises          Wind Star
Windstar Cruises          Wind Spirit

* The casino operation on board Insignia was suspended on April 5, 2012, as the vessel was leased to a different cruise line by Oceania Cruises. We will not operate the ship-based casino as long as it is leased to a different cruise line.

We also hold a 33.3% ownership interest in and actively participate in the management of Casinos Poland Ltd ("CPL"), the owner and operator of eight casinos in Warsaw, Katowice, Gydnia, Wroclaw, Lodz (opened February 16, 2012), Krakow (opened March 29, 2012), Sosnowiec (opened April 18, 2012) and Posnan (opened June 28, 2012) in Poland. The Lodz casino underwent a full refurbishment and held a grand re-opening on September 21, 2012. CPL obtained an additional gaming license in the city of Plock, which is scheduled to open in the first quarter of 2013. CPL is also participating in other license applications, including another location in Warsaw. Decisions from the Polish Minister of Finance on these applications are pending. We account for this investment under the equity method.

On October 11, 2012, our subsidiary CCE signed an agreement with LOT Polish Airlines to acquire an additional 33.3% ownership interest in CPL. The transaction is subject to approval from the Polish Minister of Finance and the co-shareholder in CPL. There is no assurance that CCE will obtain the needed approvals or as to the timing of such approvals. Upon closing of the transaction, CCE will own a 66.6% ownership interest in CPL. The purchase price is approximately $6.8 million, and the Company intends to pay for the investment with cash on hand.

Finally, we have a long-term management agreement to direct the operation of the casino at the Radisson Aruba Resort, Casino & Spa. We receive a management fee consisting of a fixed fee plus a percentage of earnings before interest, taxes, depreciation and amortization.

Presentation of Foreign Currency Amounts - The average exchange rates to the U.S. dollar used to translate balances during each reported period are as follows:

                                 For the three months                        For the nine months
                                 ended September 30,                         ended September 30,
Average Rates             2012          2011         % Change         2012          2011         % Change
Canadian dollar (CAD)      0.9951        0.9797           (1.6 %)      1.0023        0.9778           (2.5 %)
Euros (€)                  0.7990        0.7077          (12.9 %)      0.7805        0.7113           (9.7 %)
Polish zloty (PLN)         3.3019        2.9369          (12.4 %)      3.2822        2.8576          (14.9 %)
Source: Pacific
Exchange Rate Service

RECENT DEVELOPMENTS

Developments that we believe have impacted or will impact our results of operations are discussed below.

Century Casino & Hotel (Edmonton, Alberta, Canada)

On July 13, 2012, the Alberta Gaming and Liquor Commission approved the addition of 30 slot machines to the gaming floor. During the third quarter of 2012, 28 slot machines were gradually added and 2 more are expected to be added during the fourth quarter of 2012. Once added, the 30 additional machines will bring the total slot machine count to 750 at our property in Edmonton.

In June 2012, construction began on Fort Road immediately in front of the casino entrance to expand the road from 4 to 6 lanes. Substantial construction on the north side of the casino entrance is expected to be completed during the fourth quarter of 2012. This has adversely affected traffic to our casino during the third quarter of 2012 and is expected to adversely affect traffic to the casino in the fourth quarter of 2012.

Century Casino & Hotel (Cripple Creek, Colorado, United States)

In August 2012, new owners of the Gold Rush Casino in Cripple Creek opened the casino with approximately 300 slot machines and 3 table games. This casino is directly across the street from our property in Cripple Creek. Management believes the new casino did not have a significant impact on our results of operations during the third quarter of 2012 but may impact our results of operations in Cripple Creek in the future.

Casinos Poland Ltd (Poland)

On October 11, 2012, our subsidiary CCE signed an agreement with LOT Polish Airlines to acquire an additional 33.3% ownership interest in CPL. The transaction is subject to approval from the Polish Minister of Finance and the co-shareholder in CPL. There is no assurance that CCE will obtain the needed approvals or as to the timing of such approvals. Upon closing of the transaction, CCE will own a 66.6% ownership interest in CPL. The purchase price is approximately $6.8 million, and the Company intends to pay for the investment with cash on hand.

DISCUSSION OF RESULTS

Century Casinos, Inc. and Subsidiaries


                       For the three months                                      For the nine months
                        ended September 30,                                      ended September 30,
Amounts in
thousands               2012           2011         Change      % Change          2012          2011         Change       % Change
Gaming Revenue       $    16,778     $  16,236     $    542           3.3 %    $   47,746     $  46,989     $    757            1.6 %
Hotel, Bowling,
Food and Beverage
Revenue                    3,189         3,152           37           1.2 %         9,645         9,536          109            1.1 %
Other Revenue              1,041           956           85           8.9 %         3,086         2,895          191            6.6 %
Gross Revenue             21,008        20,344          664           3.3 %        60,477        59,420        1,057            1.8 %
Less Promotional
Allowances                (2,285 )      (2,198 )         87           4.0 %        (6,395 )      (6,157 )        238            3.9 %
Net Operating
Revenue                   18,723        18,146          577           3.2 %        54,082        53,263          819            1.5 %
Gaming Expenses           (7,954 )      (7,543 )        411           5.4 %       (22,645 )     (21,815 )        830            3.8 %
Hotel, Bowling,
Food and Beverage
Expenses                  (2,534 )      (2,565 )        (31 )        (1.2 %)       (7,391 )      (7,629 )       (238 )         (3.1 %)
General and
Administrative
Expenses                  (5,385 )      (5,213 )        172           3.3 %       (16,010 )     (16,429 )       (419 )         (2.6 %)
Total Operating
Costs and Expenses       (17,051 )     (16,847 )        204           1.2 %       (49,581 )     (50,705 )     (1,124 )         (2.2 %)
Earnings from
Equity Investment            (57 )         249         (306 )      (122.9 %)          381           723         (342 )        (47.3 %)
Earnings from
Operations                 1,615         1,548           67           4.3 %         4,882         3,281        1,601           48.8 %
Net Earnings         $     1,186     $   1,423     $   (237 )       (16.7 %)   $    3,467     $   2,431     $  1,036           42.6 %

Earnings Per Share
  Basic              $      0.05     $    0.06     $  (0.01 )       (16.7 %)   $     0.14     $    0.10     $   0.04           40.0 %
  Diluted            $      0.05     $    0.06     $  (0.01 )       (16.7 %)   $     0.14     $    0.10     $   0.04           40.0 %

Net operating revenue increased by $0.6 million, or 3.2%, and $0.8 million, or 1.5%, for the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011. Following is a breakout of net operating revenue by property or category for the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011:

· Edmonton increased by $0.2 million, or 4.1%, and increased by $0.2 million, or 1.4%;

· Calgary decreased by $0.1 million, or 4.5%, and decreased by $0.2 million, or 2.2%;

· Central City increased by $0.3 million, or 6.4%, and increased by $0.5 million, or 3.5%;

· Cripple Creek decreased by $0.1 million, or 3.7%, and decreased by $0.2 million, or 1.5%; and

· Ship-based casinos and other increased by $0.3 million, or 17.2%, and increased by $0.4 million, or 8.8%.

Total operating costs and expenses increased by $0.2 million, or 1.2%, and decreased $1.1 million, or 2.2%, for the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011. Following is a breakout of total operating costs and expenses by property or category for the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011:

· Edmonton increased by $0.1 million, or 2.5%, and remained flat;

· Calgary increased by less than $0.2 million, or 8.8%, and increased by $0.1 million, or 1.8%;

· Central City decreased by $0.1 million, or 2.5%, and decreased by $0.6 million, or 4.8%;

· Cripple Creek decreased by $0.2 million, or 6.3%, and decreased by $0.3 million, or 3.1%;

· Ship-based casinos and other increased by $0.2 million, or 11.3%, and increased by $0.3 million, or 7.9%; and

· Corporate other remained flat, and decreased by $0.7 million, or 15.7%.

As a result of the foregoing, net earnings decreased by $0.2 million, or 16.7%, and increased by $1.0 million, or 42.6%, for the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011. Following is a breakout of net earnings by property or category for the three and nine months ended September 30, 2012 compared to the three and nine months ended September 30, 2011:

· Net earnings at our property in Edmonton decreased by less than $0.1 million, or 1.9%, and increased by less than $0.1 million, or 1.2%;

· Net earnings at our property in Calgary decreased by $0.5 million, or 639.2%, and decreased by $0.3 million, or 219.7%;

· Net earnings at our property in Central City increased by $0.3 million, or 82.1%, and increased by $0.7 million, or 96.6%;

· Net earnings at our property in Cripple Creek increased by less than $0.1 million, or 10.0%, and increased by $0.1 million, or 8.6%;

· Net earnings from our ship-based casinos and other increased by $0.1 million, or 81.7%, and increased by less than $0.1 million, or 8.5%; and

· Net loss for corporate other increased by $0.1 million, or 20.5%, and decreased by $0.6 million, or 23.3%.

Results by property are discussed in further detail in the following pages.

Casinos

Edmonton


                      For the three months                                        For the nine months
                       ended September 30,                                        ended September 30,
Amounts in
thousands              2012            2011        Change        % Change          2012          2011         Change        % Change
Gaming              $     4,425      $  4,285     $     140            3.3 %    $   12,892     $  12,821     $      71            0.6 %
Hotel, Food and
Beverage                  1,436         1,359            77            5.7 %         4,347         4,230           117            2.8 %
Other                       480           447            33            7.4 %         1,574         1,445           129            8.9 %
Gross Revenue             6,341         6,091           250            4.1 %        18,813        18,496           317            1.7 %
Less Promotional
Allowances                 (250 )        (239 )          11            4.6 %          (778 )        (705 )          73           10.4 %
Net Operating
Revenue                   6,091         5,852           239            4.1 %        18,035        17,791           244            1.4 %
Gaming Expenses          (1,704 )      (1,593 )         111            7.0 %        (5,092 )      (4,886 )         206            4.2 %
Hotel, Food and
Beverage Expenses        (1,050 )        (980 )          70            7.1 %        (3,073 )      (2,862 )         211            7.4 %
General and
Administrative
Expenses                 (1,381 )      (1,343 )          38            2.8 %        (4,055 )      (4,104 )         (49 )         (1.2 %)
Total Operating
Costs and
Expenses                 (4,395 )      (4,289 )         106            2.5 %       (12,966 )     (12,966 )           0            0.0 %
Earnings from
Operations                1,696         1,563           133            8.5 %         5,069         4,825           244            5.1 %
Net Earnings        $     1,127      $  1,149     $     (22 )         (1.9 %)   $    3,281     $   3,242     $      39            1.2 %

Three Months Ended September 30, 2012 and 2011 Net operating revenue at our property in Edmonton increased by $0.2 million, or 4.1%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.

In CAD, net operating revenue increased by $0.3 million, or 5.7%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The increase is due to increases in gaming, hotel, food and beverage revenue for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The increase in gaming revenue is due to an increase in Baccarat table games play and the 28 additional slot machines added to the floor during the third quarter of 2012. The increase in hotel, food and beverage revenue is due to higher hotel room occupancy and increased customer volumes in the casino.

Total operating costs and expenses increased by $0.1 million, or 2.5%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.

In CAD, total operating costs and expenses increased by $0.2 million, or 4.0%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The increase is due to higher entertainment, payroll and food costs of $0.3 million offset by a decrease in depreciation expense of $0.1 million for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.

As a result of the foregoing, earnings from operations increased by $0.1 million, or 8.5%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. In CAD, earnings from operations increased by $0.2 million, or 10.2%, for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011.

Net earnings decreased by less than $0.1 million, or 1.9%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The decrease in net earnings is due to foregoing operational items as well as an increase in income tax expense of $0.3 million offset by a decrease in interest expense and deferred financing charges of $0.1 million due to interest expense savings from the early payoff of the mortgage related to the Edmonton property ("Edmonton Mortgage") and the lower debt balance of the BMO loan.

In CAD, net earnings increased by $0.9 million, or 132.6%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The increase in net earnings is due to a foreign currency gain of $0.3 million for the three months ended September 30, 2012 compared to a foreign currency loss of $0.5 million of the three months ended September 30, 2011, and an increase in income tax expense of $0.3 million.

Nine Months Ended September 30, 2012 and 2011 Net operating revenue at our property in Edmonton increased by $0.2 million, or 1.4% for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

In CAD, net operating revenue increased by $0.7 million, or 3.9%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 due to increases in gaming, hotel, food, beverage and other revenue for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

The increase in gaming revenue is due to a total of 84 additional slot machines added to the floor during the first nine months of 2012 and an increase in Baccarat table games play. The increase in hotel, food and beverage revenue is due to higher hotel room occupancy, increased customer volumes on the gaming floor and increased showroom event attendance for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increase in other revenue is due to increased showroom and Comedy Club ticket sales for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

Total operating costs and expenses remained flat for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

In CAD, total operating costs and expenses increased by $0.3 million, or 2.5%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increase is due to higher advertising, promotional, food and payroll costs of $0.7 million offset by a decrease in depreciation expense of $0.4 million for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

As a result of the foregoing, earnings from operations increased by $0.2 million, or 5.1%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. In CAD, earnings from operations increased by $0.4 million, or 7.8%, for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011.

Net earnings increased by less than $0.1 million, or 1.2%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011.

In CAD, net earnings increased by $0.9 million, or 33.4%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The increase in net earnings is due to a foreign currency gain of $0.3 million for the nine months ended September 30, 2012 compared to a foreign currency loss of $0.5 million of the nine months ended September 30, 2011, and an increase in income tax expense of $0.2 million.

Calgary



                     For the three months                                       For the nine months
                      ended September 30,                                       ended September 30,
Amounts in
thousands             2012            2011        Change       % Change          2012           2011        Change       % Change
Gaming             $     1,625      $  1,661     $     (36 )        (2.2 %)   $     4,891     $  4,825     $      66           1.4 %
Bowling, Food
and Beverage               563           652           (89 )       (13.7 %)         2,096        2,363          (267 )       (11.3 %)
Other                      290           259            31          12.0 %            747          695            52           7.5 %
Gross Revenue            2,478         2,572           (94 )        (3.7 %)         7,734        7,883          (149 )        (1.9 %)
Less Promotional
Allowances                (141 )        (126 )          15          11.9 %           (398 )       (380 )          18           4.7 %
Net Operating
Revenue                  2,337         2,446          (109 )        (4.5 %)         7,336        7,503          (167 )        (2.2 %)
Gaming Expenses         (1,213 )      (1,018 )         195          19.2 %         (3,266 )     (2,876 )         390          13.6 %
Bowling, Food
and Beverage
Expenses                  (505 )        (592 )         (87 )       (14.7 %)        (1,612 )     (1,975 )        (363 )       (18.4 %)
General and
Administrative
Expenses                  (833 )        (740 )          93          12.6 %         (2,390 )     (2,334 )          56           2.4 %
Total Operating
Costs and
Expenses                (2,768 )      (2,544 )         224           8.8 %         (7,899 )     (7,762 )         137           1.8 %
(Losses) from
Operations                (431 )         (98 )        (333 )      (339.8 %)          (563 )       (259 )        (304 )      (117.4 %)
Net (Loss)
earnings           $      (399 )    $     74     $    (473 )       639.2 %    $      (486 )   $   (152 )   $    (334 )      (219.7 %)

Three Months Ended September 30, 2012 and 2011 Net operating revenue at our property in Calgary decreased by $0.1 million, or 4.5%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.

In CAD, net operating revenue decreased by $0.1 million, or 3.0%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. Net operating revenue decreased due to decreased bowling, food and beverage revenue of $0.1 million, or 12.2%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. This decrease was due to lower food and beverage revenue during showroom events, lower bowling patronage and no bowling league play.

Total operating costs and expenses increased by $0.2 million, or 8.8%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.

In CAD, total operating costs and expenses in Calgary increased by $0.3 million, or 10.6%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The increase is due to higher band entertainment, promotional, payroll and utility costs for the three months ended September 30, 2012 compared to the three months ended September 30, 2011.

As a result of the foregoing, earnings from operations decreased by $0.3 million, or 339.8%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. In CAD, earnings from operations decreased by $0.3 million, or 352.6% for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011.

Net earnings decreased by $0.5 million, or 639.2%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The decrease in net earnings is due to the foregoing operational items as well as a decrease in income tax benefit of $0.1 million.

In CAD, net earnings increased by $0.2 million, or 59.5%, for the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The increase in net earnings is due to a foreign currency gain of $0.2 million for the three months ended September 30, 2012 compared to a foreign currency loss of $0.4 million for the three months ended September 30, 2011 and a decrease in the income tax benefit of $0.1 million.

Nine Months Ended September 30, 2012 and 2011 Net operating revenue at our property in Calgary decreased by $0.2 million, or 2.2%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 due to a decrease in the average exchange rate between . . .