Global Casinos Inc.

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International Guild of Hospitality & Restaurant Managers

Global Casinos Inc. (OTC BB:GBCS.PK)

6560 Gunpark Drive, Suite E
Boulder, CO 80301

Phone: (303) 527-2903
Fax: (719) 590-4888
Email: info@globalcasinos.com

Employees (last reported count): 42

Global Casinos, Inc. and its wholly owned subsidiaries operate in the domestic gaming industry. The Company is organized as a holding company for the purpose of acquiring and operating casinos, gaming properties and other related interests.

As of June 30, 2001 , Global had three operating subsidiaries. Its wholly owned subsidiary, Casinos U.S.A., Inc. (Casinos USA), owns and operates the Bull Durham Saloon & Casino (Bull Durham) located in Black Hawk, Colorado. Global's wholly owned subsidiary, Global Central Corporation (Global Central), manages a portfolio of marketable securities. Global Central previously operated the Tollgate Saloon & Casino (Tollgate) located in Central City, Colorado . The Tollgate was closed effective July 31, 2000 . The Company's wholly owned subsidiary, Global Alaska Industries, Inc. (Global Alaska), owns and operates Alaska Bingo Supply (ABS), located in Anchorage , Alaska .

Subsequent to June 30, 2001 , Global Casinos formed a new wholly owned subsidiary, OnSource Corporation (OnSource). OnSource was formed for the purpose of being spun-off, as a dividend, to the shareholders of Global Casinos, pro rata. The intent is to transfer to OnSource 100% of Global Casinos' interest in Global Alaska Industries, Inc. as well as 100% of Global Casinos' interest in Global Central Corporation. In addition, certain additional assets and liabilities of Global Casinos will be transferred to OnSource as part of the spinoff.

Casinos U.S.A. - The Bull Durham

Casinos USA was acquired on November 19, 1993 . Global Casinos acquired 100% of the outstanding common stock of Casinos USA, Lincoln Corporation (Lincoln) and Woodbine Corporation (Woodbine). Lincoln and Woodbine operated the Last Chance Saloon and Lillie's, respectively; both located in Deadwood, South Dakota . The Company permanently closed the Last Chance Saloon on May 31, 1994 and Lillie's on June 30, 1995 , due to unprofitable operations.

In October 1995, Casinos USA filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code as it was in default under all of its secured obligations encumbering the Bull Durham Saloon and Casino. In January 1997, the Court approved its Second Amended Plan of Reorganization, and in February 1998 the bankruptcy was discharged upon being fully administered.

The Bull Durham is located approximately one hour from Denver , Colorado , in the town of Black Hawk . The Company, through its acquisition of Casinos USA, has operated The Bull Durham since 1993, soon after limited stakes gambling was legalized in Black Hawk in 1992. The casino holds retail liquor license issued by the State of Colorado , and offers limited food service in addition to beverages.

The casino occupies approximately 7,200 square feet. In November 1998, an expansion project increased the gaming space by 2,500 square feet, and allowed the casino to offer 26 more slot machines and two more table games. As currently configured, the casino has 143 slot machines available for play and has four standard blackjack tables.

Global Pelican - Pelican Casino

The Company operated the Pelican Casino, located on the island of St. Maarten , from August 1996 to December 1999. The casino sat on the West side of the island, which is controlled by the Dutch. The Pelican Casino was located in one of the largest time-share complexes on the island, the Pelican Resort, which has over 700 rooms. The casino occupied 7,000 square feet and featured 140 slot machines, five black jack tables, two Pelican Poker, two roulette wheels, one crap table and one Let-it-Ride table.

Global Alaska - Alaska Bingo Supply (ABS)

Charitable bingo pulltabs are currently the sole form of legalized gaming in Alaska. ABS is a distributor of bingo and pulltab products in Alaska. In addition, ABS controls the leases covering one bingo hall operated by third parties as a means of ensuring distribution and maintaining its market share.

Global Central - Tollgate

Effective August 7, 1999, the Company entered a Lease and Option Agreement (the Lease), following which it leased the Tollgate Casino and Saloon in Central City, Colorado. The term of the Lease was 24 months and grants to the Company the option to purchase the casino and associated real estate and equipment at any time prior to the expiration of the Lease. The Company also leased certain additional gaming equipment from a third party that had previously operated the casino under terms that also grant the Company the ability to purchase the equipment at the end of the 24-month term. The Company obtained gaming and casino licenses and opened the Tollgate for operation in August 1999. The Tollgate was closed effective July 31, 2000 due to continuing operating losses.

BPJ Holdings - Casino Masquerade, Aruba

In April 1994, the Company purchased a 66 2/3% interest in Global Entertainment Group, Inc. N.V. (Global Entertainment). Global Entertainment, through BPJ Holdings N.V. (BPJ), its wholly owned subsidiary, owned and operated Casino Masquerade located in the Radisson Aruba Resort and Casino on the Caribbean island of Aruba, Netherlands Antilles. The Company acquired the remaining 33 1/3% interest in Global Entertainment in July 1995.

During February 1998, Global was notified that the resort would close effective March 1, 1998 for extensive remolding that would cause a relocation of the casino area. In April 1998, the Company reached a settlement agreement with the lessor of the casino space regarding payment of working capital expenditures and casino improvements, as well as the provision of new lease terms.

The Company determined that it was unable to meet the funding provisions of the proposed new lease agreement. On December 23, 1998, the Company completed the dissolution of Casino Masquerade under a settlement agreement with the hotel. Effective December 31, 1998, the Company agreed to sell all of the outstanding shares of BPJ to an unaffiliated third party.

Ecuador

During fiscal year ended June 30, 1999, the Company opened and closed a small gaming operation located in a hotel in a resort town in Ecuador. The Company's capital investment in this operation was not material and, due to unfavorable financial and political conditions, the Company elected to close the casino after a few months of operation.

6560 Gunpark Drive, Suite E
Boulder, CO 80301 Phone: (303) 527-2903
Fax: (719) 590-4888
Email: info@globalcasinos.com Employees (last reported count): 42

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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