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, 2005

For the transition period from          to         

Commission file number 0-15415

GLOBAL CASINOS, INC.
(Exact Name of Small Business Issuer as Specified in its Charter) 

5455 Spine Road, Suite C, Boulder, Colorado 80301
(Address of Principal Executive Offices)

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

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the last 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.

Yes  [ X ]    No [    ]

As of November 1, 2005, the Registrant had 3,321,360 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, 2005, and its results of operations for the three month periods ended September 30, 2005 and 2004 and its cash flows for the three month periods ended September 30, 2005 and 2004. 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.

                    At September 30, 2005, notes payable and long-term debt consisted of the following:

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, 2005, 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 $67,706 ($0.02 per share) for the three months ended September 30, 2005 compared to net income of $170,173 ($0.07 per share) for the same period in 2004.

Casino revenues for the three months ended September 30, 2005 were $1,076,980 compared to $966,978 for the 2004 period, an increase of $110,002 or 11%. The increased revenues are primarily attributed to an increased win percentage on our slot machines. There was a shift in our players' preferences toward "penny" slot machines, which typically have a higher house win percentage than larger denomination slot machines. We also experienced a temporary increase in house win percent on our "dollar" slot machines.

Casino operating expenses increased to $793,560 for the three months ended September 30, 2005 compared to $701,198 for the three months ended September 30, 2004, an increase of $92,362. Our costs increased by 13% while our revenues increased by 11%. The largest component of cost increase came from the installation of the Oasis Casinos Management System. An increase in depreciation expense of $22,469 was primarily depreciation on the new system. Slot club expenses also increased by $12,965 as we rolled out the system. Payroll increases of $18,962 primarily relate to increasing wage rates. Furthermore, directors' fees paid to the directors of Casinos USA increased by $14,500 for the quarter.

General and administrative expenses increased from $46,768 for the three months ended September 30, 2004 to $47,444 for the three months ended September 30, 2005, an increase of $676 or 1%. Neither period included any unusual items.

Interest expense was $168,270 for the three months ended September 30, 2005 compared to $48,839 for the similar period in 2004. During 2005, we issued 12% convertible debentures with detachable warrants and a beneficial conversion feature. Amortization of the debt discounting resulting from the warrants and beneficial conversion feature was $125,000 for the quarter, which increased our reported interest expense.

For federal income tax purposes, Global has a net operating loss carryover (NOL) approximating $6,500,000, 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.

Our primary source of cash is internally generated through operations. Historically, cash generated from operations has not been sufficient to satisfy working capital requirements and capital expenditures. Consequently, we have depended on funds received through debt and equity financing to address these shortfalls. We have also relied, from time to time, upon loans from affiliates to meet immediate cash demands. There can be no assurance that these affiliates or other related parties will continue to provide funds to us in the future, as there is no legal obligation on these parties to provide such loans.

At September 30, 2005, the Company had cash and cash equivalents of $1,056,752, 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.

Our working capital improved by $217,823 to $308,645 at September 30, 2005, from $90,822 at June 30, 2005, primarily because of cash flow from operating activities.

Cash provided by operating activities was $268,463 for the three months ended September 30, 2005. For the same period in 2004, operating activities provided net cash of $299,642. The decline in cash provided by operating activities of $31,179 was primarily the result of using some cash balances to reduce outstanding accounts payable.

Cash used in investing activities was $9,377 for the three months ended September 30, 2005, all of which was used for capital expenditures. We used net cash of $24,916 in investing activities for the three months ended September 30, 2004, also for capital expenditures.

Cash flows used in financing activities increased $52,546 to $119,542 for the three months ended September 30, 2005, compared to cash used of $66,996 in 2004. Scheduled payments on our indebtedness were $119,542 in 2005 and $91,996 in 2004. The increased debt payments primarily related to our purchase of the Oasis Casino Management System during fiscal year 2005. In 2004, we also received cash proceeds of $25,000 from the sale of common stock units.

The warrants were valued using the Black Scholes option pricing model based on the market price of the common stock at the commitment date. The warrant valuation of $237,000 has been allocated to additional paid in capital. After allocating value to the warrants, we used the intrinsic value method to determine that all the remaining proceeds should be allocated to the embedded beneficial conversion feature. As such, $263,000 was credited to additional paid in capital. The total allocation of $500,000 will be amortized over 12 months commencing January 3, 2005.

In September 2004, the Company sold to three investors an aggregate of 250,000 units at a price of $0.10 per unit. Each unit consisted of one share of common stock and one warrant exercisable for a period of 15 months to purchase one additional share of common stock at an exercise price of $0.15. The securities were taken for investment purposes and were subject to restrictions on transfer. The securities were issued without registration under the Securities Act of 1933, as amended, in reliance upon the exemption from registration requirements thereof contained in Section 4(2) and Regulation D, Rule 504 thereunder.

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 as of the end of the period covered by 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.