UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

[ X ]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2004

[   ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from         to        

Commission file number 0-15415

Issuer's telephone number:     (303) 527-2903

______________________________________________________________________
Former name, former address, and former fiscal year, if changed since last report

As of November 10, 2004, the Registrant had 2,981,360 shares of its Common Stock outstanding.

Transitional Small Business Disclosure Format (check one) Yes [ ] No [ X ]

The consolidated financial statements included herein have been prepared by Global Casinos, Inc. (the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote 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 such SEC rules and regulations. In the opinion of management of the Company the accompanying statements contain all adjustments necessary to present fairly the financial position of the Company as of September 30, 2004, and its results of operations for the three month periods ended September 30, 2004 and 2003 and its cash flows for the three month periods ended September 30, 2004 and 2003. The results for these interim periods are not necessarily indicative of the results for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto filed as a part of the Company's annual report on Form 10-KSB.

See accompanying notes to the consolidated financial statements.

See accompanying notes to the consolidated financial statements.

See accompanying notes to the consolidated financial statements.

Certain statements in this Management's Discussion and Analysis of Financial Condition and Results of Operations which are not historical facts are forward-looking statements such as statements relating to future operating results, existing and expected competition, financing and refinancing sources and availability and plans for future development or expansion activities and capital expenditures. Such forward-looking statements involve a number of risks and uncertainties that may significantly affect our liquidity and results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service financing and refinancing efforts, general economic conditions, changes in gaming laws or regulations (including the legalization of gaming in various jurisdictions) and risks related to development and construction activities. The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report.

We operate in the domestic gaming industry. We were organized as a holding company for the purpose of acquiring and operating casinos, gaming properties and other related interests. At September 30, 2004, our operations consisted solely of the Bull Durham Saloon & Casino in Black Hawk, Colorado.

Our operations are seasonal. The Bull Durham experiences a significant increase in business during the summer tourist season.

We operate in a highly regulated environment subject to the political process. Our retail gaming license is subject to annual renewal by the Colorado Division of Gaming. Changes to existing statutes and regulations could have a negative effect on our operations.

We recognized net income of $170,173 for the three months ended September 30, 2004 compared to net income of $54,630 for the same period in 2003. The restructuring of our operations that commenced in 2001 has continued to improve our operating results.

Casino revenues for the three months ended September 30, 2004 were $966,978 compared to $754,045 for the 2003 period, an increase of $212,933 or 28%. The increased revenues are primarily attributed to our efforts in three areas. First, we expanded our direct mail marketing campaign to target repeat customers. Second, we replaced approximately 25 of our older slot machines with newer models. Third, we reconfigured the gaming floor to add 3 new slot machines.

Casino operating expenses increased to $701,198 for the three months ended September 30, 2004 compared to $599,999 for the three months ended September 30, 2003, an increase of $101,199. Our costs increased by 17% while our revenues increased by 28%. The largest component of cost increase was $40,345 related to marketing, including increased direct mail costs of $17,545 and increased slot club costs of $16,852. We also increased our payroll-related expenses by $37,625 as we increased staffing levels to accommodate additional business. Depreciation increased by $13,064 because we continue to upgrade or replace our older slot machines. Food costs increased by $9,821 because one of our promotional activities provided free meals to loyal customers.

General and administrative expenses decreased from $47,167 for the three months ended September 30, 2003 to $46,768 for the three months ended September 30, 2004, a decrease of $399 or 1%. Neither period included any unusual items.

Interest expense was $48,839 for the three months ended September 30, 2004 compared to $52,249 for the similar period in 2003. The reduction in interest expense of $3,410 or 6% reflects a reduction in outstanding principal balances.

For federal income tax purposes, Global has a net operating loss of carryover (NOL) approximating $7,540,000, which can be used to offset future taxable income, if any. Under the Tax Reform Act of 1986, the amounts of and the benefits from NOL's are subject to certain limitations including restrictions imposed when there is a loss of business continuity or when ownership changes in excess of 50% of outstanding shares, under certain circumstances. Thus, there is no guarantee that Global will be able to utilize its NOL before it expires and no potential benefit has been recorded in the financial statements.

Inflation did not have a material impact on the Company's operations for the period.

Other than the foregoing, management knows of no trends, demands, or uncertainties that are reasonably likely to have a material impact on the Company's results of operations.

At September 30, 2004, the Company had cash and cash equivalents of $897,191, substantially all of which was utilized in our casino operations. Pursuant to state gaming regulations, the casino is required to maintain cash balances sufficient to pay potential jackpot awards. The Company does not have access to any revolving credit facilities.

While the Company believes that its capital resources are sufficient to allow the continued operation of its casino, it does not currently have sufficient resources to expand its operations or to satisfy overdue obligations of the parent company.

Our working capital deficiency decreased by $305,189 to $(1,058,857) at September 30, 2004, from $(1,364,046) at June 30, 2004, primarily because of cash flow from operating activities.

At September 30, 2004, we owed debt in the amount of approximately $417,973 to individuals and entities that, by the terms of these notes, was in default. Accrued interest on these notes was $487,968. Should any of these note holders make demand for payment, we would not have the financial resources to pay these notes.

Cash provided by operating activities was $299,642 for the three months ended September 30, 2004. For the same period in 2003, operating activities provided net cash of $151,962. The improvement primarily resulted from the increase in net income.

Cash used in investing activities was $24,916 for the three months ended September 30, 2004, all of which was used for capital expenditures. We used net cash of $25,656 in investing activities for the three months ended September 30, 2003, also for capital expenditures.

Cash flows used in financing activities increased $1,701 to $66,996 for the three months ended September 30, 2004, compared to cash used of $65,295 in 2003. Scheduled payments on our indebtedness were $91,996 in 2004 and $65,295 in 2003. In 2004, we also received cash proceeds of $25,000 from the sale of common stock units.

As previously disclosed, Astraea holds a promissory note which under the 2002 Restructuring was assigned by Global to Casinos, U.S.A. and is currently the obligation of Casinos, U.S.A. The principal amount of the note, together with interest at the rate of 4% per annum, is due and payable in September 2009. The note is secured by a pledge of 100% of the shares of Casinos, U.S.A. owned by Global Casinos and the assets of Casinos, U.S.A. Global Casinos has granted to Astraea the option to purchase all of the shares of Casinos, U.S.A. owned by Global Casinos for $100, exercisable any time after March 17, 2005. Global Casinos can purchase the option from Astraea by repaying the principal and interest due under the note plus an additional amount approximating $78,000. Global Casinos does not have the capital with which to repay the note and does not anticipate being able to generate the capital through operations. As a result, the only way that Global Casinos could purchase the Astraea option by retiring the promissory note would be through an infusion of debt or equity. Although Global intends to pursue such a financing, there are no guarantees that it will be successful.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As of September 30, 2004, we had an accumulated deficit and a working capital deficiency. We were in default on various loan agreements, were delinquent on payments to certain creditors and had ceased operating all but one of our casinos. These conditions raise substantial doubt about our ability to continue as a going concern.

We continue our efforts to formulate plans and strategies to address our financial condition and increase profitability. We will continue to address debt currently in default by negotiating with creditors to convert debt to equity, extend maturity dates of debt, and accept reduced payment terms. We are evaluating methods to reduce costs and enhance our operating results. We cannot, however, provide any assurances that we will be successful in these endeavors.

Other than the foregoing, management knows of no trends, demands, or uncertainties that are reasonably likely to have a material impact on the Company's liquidity and capital resources.

Frank L. Jennings, Principal Executive and Financial Officer of Global Casinos, Inc., has established and is currently maintaining disclosure controls and procedures for the Company. The disclosure controls and procedures have been designed to ensure that material information relating to the Company is made known to him as soon as it is known by others within the Company.

Our Principal Executive and Financial Officer conducts an update and a review and evaluation of the effectiveness of the Company's disclosure controls and procedures and has concluded, based on his evaluation within 90 days of the filing of this Report, that our disclosure controls and procedures are effective for gathering, analyzing and disclosing the information we are required to disclose in our reports filed under the Securities Exchange Act of 1934. There have been no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of the previously mentioned evaluation.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.