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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

___X___ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

OR

_______ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ___________

Commission file number 0-22290
------------

CENTURY CASINOS, INC.
---------------------
(Exact name of registrant as specified in its charter)

DELAWARE 84-1271317
-------- -----------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)

1263 Lake Plaza Drive Suite A, Colorado Springs, Colorado 80906
---------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(719) 527-8300
----------------
(Registrant's telephone number, including area code)

(Former address of principal executive offices)

(Registrant's former telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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___

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes___ No _X_

Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date.

Common stock, $0.01 par value, 13,681,900 shares outstanding as of October
28, 2004.

-1-



CENTURY CASINOS, INC.
FORM 10-Q
INDEX
Page
PART I FINANCIAL INFORMATION (unaudited) Number

Item 1. Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets as of September
30, 2004 and December 31, 2003 3

Condensed Consolidated Statements of Earnings
for the Three Months Ended September 30, 2004 and 2003 4

Condensed Consolidated Statements of Earnings
for the Nine Months Ended September 30, 2004 and 2003 5

Condensed Consolidated Statements of Comprehensive
Earnings for the Three Months Ended September 30, 2004
and 2003 6

Condensed Consolidated Statements of Comprehensive
Earnings for the Nine Months Ended September 30, 2004
and 2003 6

Condensed Consolidated Statements of Cash Flows
for the Nine Months Ended September 30, 2004 and 2003 7

Notes to Condensed Consolidated Financial Statements 9

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 28

Item 3. Quantitative and Qualitative Disclosures About Market Risk 55

Item 4. Controls and Procedures 56

PART II OTHER INFORMATION (unaudited)

Item 1. Legal Proceedings 57

Item 6. Exhibits and Reports on Form 8-K 57

SIGNATURES 58

-2-




CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------



Dollar amounts in thousands,
except for share information September 30, December 31,
------------- ------------
2004 2003
---- ----
(Unaudited)
-----------

ASSETS
Current Assets:
Cash and cash equivalents $ 4,961 $ 4,729
Restricted cash 618 598
Receivables, net 401 269
Prepaid expenses 604 441
Inventories 175 131
Other current assets 28 28
Deferred income taxes 74 111
----------- -----------
Total current assets 6,861 6,307

Property and Equipment, net 39,119 36,796
Goodwill, net 8,669 8,088
Casino License Acquisition Costs, net 1,876 1,760
Deferred Income Taxes 624 666
Equity Investment in
Unconsolidated Subsidiary 64 -
Other Assets 1,078 1,200
----------- -----------
Total $ 58,291 $ 54,817
=========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 2,134 $ 2,136
Accounts payable and accrued liabilities 3,262 1,979
Accrued payroll 1,420 1,268
Taxes payable 1,411 1,088
----------- -----------
Total current liabilities 8,227 6,471

Long-Term Debt, less current portion 12,924 14,913
Other Non-current Liabilities 169 371
Minority Interest 70 14
Commitments and Contingencies - -
Shareholders' Equity:
Preferred stock; $.01 par value;
20,000,000 shares authorized;
no shares issued or outstanding - -
Common stock; $.01 par value;
50,000,000 shares authorized;
14,485,776 shares issued; 13,681,900 an
13,680,500 shares outstanding, respecti 145 145
Additional paid-in capital 21,528 21,529
Accumulated other comprehensive earnings 2,601 2,034
Retained earnings 14,456 11,172
----------- -----------
38,730 34,880
Treasury stock - 803,876 and
805,276 shares at cost, respectively (1,829) (1,832)
----------- -----------
Total shareholders' equity 36,901 33,048
----------- -----------
Total $ 58,291 $ 54,817
=========== ===========



See notes to condensed consolidated financial statements.

-3-





CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
- --------------------------------------------------------------------------------



For The Three Months Ended
September 30,
Dollar amounts in thousands,
except for share information 2004 2003
---- ----

Operating Revenue:
Casino $ 9,349 $ 8,525
Hotel, food and beverage 1,258 932
Other 267 106
----------- ---------
10,874 9,563
Less promotional allowances 1,205 1,285
----------- ---------
Net operating revenue 9,669 8,278
----------- ---------

Operating Costs and Expenses:
Casino 3,655 3,132
Hotel, food and beverage 843 691
General and administrative 2,292 2,004
Depreciation 732 675
----------- ---------
Total operating costs and expenses 7,522 6,502
----------- ---------

Loss from unconsolidated subsidiary (45) -

----------- ---------
Earnings from Operations 2,102 1,776
Non-operating Income (expense):
Interest expense (389) (512)
Other income, net 37 113
Non-operating items from
unconsolidated subsidiary 6 -
----------- ---------
Non-operating expense, net (346) (399)
----------- ---------
Earnings before Income Taxes and
Minority Interest 1,756 1,377
Provision for income taxes 498 463
----------- ---------
Earnings before Minority Interest 1,258 914
Minority interest in subsidiary earnings (25) -
----------- ---------
Net Earnings $ 1,233 $ 914
=========== =========

Earnings Per Share:
Basic $ 0.09 $ 0.07
=========== =========
Diluted $ 0.08 $ 0.06
=========== =========

See notes to condensed consolidated financial statements.


-4-




CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
- --------------------------------------------------------------------------------



For The Nine Months Ended
September 30,
Dollar amounts in thousands, except for
share information 2004 2003
---- ----

Operating Revenue:
Casino $ 26,223 $ 23,670
Hotel, food and beverage 3,197 2,570
Other 543 401
----------- ----------
29,963 26,641
Less promotional allowances 3,316 3,429
----------- ----------
Net operating revenue 26,647 23,212
----------- ----------

Operating Costs and Expenses:
Casino 10,132 8,498
Hotel, food and beverage 2,245 1,841
General and administrative 6,494 5,746
Depreciation 2,114 1,986
----------- ----------

Total operating costs and expenses 20,985 18,071
----------- ----------

Income from unconsolidated subsidiary 6 -

----------- ----------
Earnings from Operations 5,668 5,141
Non-operating Income (expense):
Interest expense (1,201) (1,564)
Other income, net 163 242
Non-operating items from
unconsolidated subsidiary (2) -
----------- ----------
Non-operating expense, net (1,040) (1,322)
----------- ----------
Earnings before Income Taxes and
Minority Interest 4,628 3,819
Provision for income taxes 1,288 1,391
----------- ----------
Earnings before Minority Interest 3,340 2,428
Minority interest in subsidiary earnings (56) (8)
----------- ----------
Net Earnings $ 3,284 $ 2,420
=========== ==========

Earnings Per Share:
Basic $ 0.24 $ 0.18
=========== ==========
Diluted $ 0.21 $ 0.16
=========== ==========


See notes to condensed consolidated financial statements.
-5-




CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited)
- --------------------------------------------------------------------------------



For The Three Months Ended
September 30,

Amounts in thousands 2004 2003
---- ----

Net Earnings $ 1,233 $ 914
Foreign currency translation adjustments (573) 951
Change in fair value of interest rate swaps,
net of income taxes 35 97
-------- --------
Comprehensive Earnings $ 695 $ 1,962
======== ========


For The Nine Months Ended
September 30,

Amounts in thousands 2004 2003
---- ----

Net Earnings $ 3,284 $ 2,420
Foreign currency translation adjustments 441 2,261
Change in fair value of interest rate swaps,
net of income taxes 126 215
------- --------
Comprehensive Earnings $ 3,851 $ 4,896
======= ========


See notes to condensed consolidated financial statements.


-6-





CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
- --------------------------------------------------------------------------------



For The Nine Months Ended
September 30,

Amounts in thousands 2004 2003
---- ----

Cash Flows from Operating Activities:
Net earnings $ 3,284 $ 2,420

Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 2,114 1,986
Amortization of deferred financing costs 61 84
Deferred tax expense 6 126
Minority interest in subsidiary earnings 56 8
Income from unconsolidated subsidiary (4) -
Gain on disposition of real estate option
and other assets (35) (59)
Other 7 (8)

Changes in operating assets and liabilities:
Receivables (130) (185)
Prepaid expenses and other assets (365) (236)
Accounts payable and accrued liabilities 332 (341)
Accrued payroll 144 (138)
Taxes payable 287 205

--------- ---------

Net cash provided by operating activities 5,757 3,862
--------- ---------


Cash Flows from Investing Activities:
Purchases of property and equipment (3,676) (1,769)
Acquisition of subsidiary,
net of $664 in cash acquired - (1,259)
Restricted cash decrease - 49
Proceeds from disposition of assets 206 258
--------- ---------

Net cash used in investing activities (3,470) (2,721)
--------- ---------







(continued)

-7-





CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
- --------------------------------------------------------------------------------



For the Nine Months Ended
September 30,

Amounts in thousands 2004 2003
---- ----
Cash Flows from Financing Activities:
Proceeds from borrowings $ 21,763 $ 21,710
Principal repayments (23,883) (23,442)
Proceeds from exercise of options 2 8
Purchases of treasury stock - (431)
---------- ----------

Net cash used in financing activities (2,118) (2,155)
---------- ----------

Effect of exchange rate changes on cash 63 325
---------- ----------

Increase (Decrease) in Cash and Cash Equivalents 232 (689)

Cash and Cash Equivalents at Beginning of Period 4,729 4,582
----------- ----------

Cash and Cash Equivalents at End of Period $ 4,961 $ 3,893
========== ==========


Supplemental Disclosure of Noncash Financing Activities:

See Note 1 for a summary of the Company's subsidiaries and the abbreviations
used in this section.

In January 2003, the Company, through its majority owned subsidiary CCA,
purchased the remaining 35% interest in CCAL for a total of $2.6 million, of
which $1.3 million was used to purchase a loan from the previous minority
shareholder, Caledon Overberg Investments (Proprietary) Limited, and is included
in principal repayments above, $1.0 million was applied to the minority
shareholder liability and $0.3 million increased the carrying value of the land
in Caledon.

In the second quarter of 2003, James Forbes, a former director of the Company,
in accordance with the Company's Employee's Equity Incentive Plan ("EEIP"),
exercised all 618,000 of his outstanding options, carrying an average exercise
price of $1.306. The shares were issued out of treasury stock. Mr. Forbes paid
the exercise price by transferring 357,080 shares of common stock to the Company
at a per share price of $2.26, the closing price on April 16, 2003.

In January 2004, the Company, through its wholly owned subsidiary CMB, purchased
an additional 40% interest in CM, bringing its total interest to 50%, by
contributing gaming equipment with a net book value of $0.60 million. The
contribution of the gaming equipment, along with a cash contribution made in
December 2002 which was accounted for by CMB on a cost basis in Euro and had a
value of $0.29 million on January 3, 2004, brought the Company's total
investment in CM to $0.89 million, of which $0.26 million was allocated to a
shareholder loan acquired as part of the transaction. The difference between the
cost and the equity of CM, of $0.57 million, has been recorded as goodwill.

Supplemental Disclosure of Cash Flow Information:



Interest paid, net of capitalized interest
of $0 in 2004 and $46 in 2003 $ 1,129 $ 1,544
======= =======
Income taxes paid $ 481 $ 700
======= =======


See notes to condensed consolidated financial statements.

-8-




CENTURY CASINOS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Century Casinos, Inc. ("CCI" or the "Company") is an international gaming
company. The Company owns and/or manages casino operations in the United States,
South Africa, the Czech Republic and international waters through the entities
listed in the following table:



Parent/Subsidiary Relationship Abbreviation Parent Ownership
Percentage
Century Casinos, Inc. (1) CCI n/a n/a
WMCK Venture Corp. WMCK CCI 100%
WMCK-Acquisition Corp. ACQ WMCK 100%
Century Casinos Cripple Creek Inc. CCC WMCK 100%
Century Resorts Limited CRL CCI 96.5%
Century Casinos Africa (Pty) Ltd. CCA CRL 100%
Century Casinos Caledon (Pty) Ltd. CCAL CCA 100%
Century Casinos West Rand (Pty) Ltd. CCWR CCA 55%
Rhino Resort Ltd. RRL CCA 50%
Verkrans Ontwikkelings Maatskappy
(Pty) Ltd VOM CCA 100%
Century Resorts International Limited CRI CCI 100%
Century Resorts Alberta, Inc. CRA CRI 55%
Century Casinos Management, Inc. CCM CCI 100%
Century Casinos Nevada, Inc. CCN CCI 100%
Century Management u. Beteiligungs GmbH CMB CCI 100%
Casino Millennium a.s. CM CMB 50%



(1) In October of 2004, the Company formed a wholly owned subsidiary,
Century Casinos Tollgate, Inc. ("CTI") which will own 65% of CC Tollgate
LLC ("CTL"), the operating company for the proposed project in Central City
Colorado.

CCI serves as a holding company, providing corporate and
administrative services to its subsidiaries.

WMCK owns and operates Womacks Casino and Hotel ("Womacks"), a
limited-stakes gaming casino in Cripple Creek, Colorado. Womacks
is one of the largest gaming facilities in Cripple Creek. The
facility has 647 slot machines, 6 limited stakes gaming tables,
21 hotel rooms and 2 restaurants.

-9-


CRL was formed in May 2004 to provide technical casino services
to some of the Company's foreign and offshore operations. In July
2004 certain officers of the Company exchanged their 3.5%
minority ownership in CCA for a 3.5% minority ownership in CRL of
equal value. CCI now owns 96.5% of CRL and CRL owns 100% of CCA.
CCA owns CCAL which owns and operates The Caledon Hotel, Spa &
Casino near Cape Town, South Africa. The resort has 295 slot
machines and 9 gaming tables, a 92-room hotel, mineral hot
springs and spa facility, 4 restaurants, 3 bars, conference
facilities, an equestrian center and operates the program
"Outdoor Experience". The Western Cape Gambling and Racing Board,
has recently granted CCAL's request to increase in the number of
permitted slot machines to 300.

CCM provided technical casino services to some of the Company's
operations. The technical services agreements were re-assigned to
CRI in October 2003, but CCM is still collecting fees that were
earned prior to that time, which remain unpaid.

CCN is a dormant subsidiary which owns non-operating casino
property and land held for sale in Nevada.

CRI serves as concessionaire of small casinos on eight luxury
cruise vessels and provides technical casino services to Casino
Millennium. The Company has a total of 208 slot machines and 30
table games, or approximately 418 gaming positions on the eight
combined shipboard casinos currently in operation. The cruise
vessel Insignia resumed operations on March 29, 2004 after it was
taken out of service following completion of its cruise schedule
to various destinations in the western Mediterranean as of
September 26, 2003. The Silver Cloud returned to service on March
27, 2004 following five months of periodic maintenance. On April
10, 2004, the Company opened a casino aboard the Nautica, a
cruise ship operated by Oceania Cruises, equipped with 42 slot
machines and 3 gaming tables. CRI owns 55% of CRA which was
formed in conjunction with an application for a gaming license in
Edmonton, Alberta, Canada. On October 12, 2004 CRI entered into a
casino services agreement with CC Tollgate LLC to manage the
proposed casino in Central City, Colorado. CRI will also enter
into a casino services agreement to manage the proposed project
in Iowa.

CMB acquired a 10% equity interest in Casino Millennium located
within a five-star hotel in Prague, Czech Republic through a
$0.24 million cash contribution in December 2002. In January
2004, CMB acquired an additional 40% of Casino Millennium,
bringing its total ownership to 50%. The current period earnings
are reported as income from unconsolidated subsidiary in the
Company's condensed consolidated statements of earnings and cash
flows. The investment by the Company for the incremental 40%
stake totaled $0.60 million and was paid by contributing gaming
equipment. Casino Millennium has 38 slot machines and 15 gaming
tables.

The Company regularly pursues additional gaming
opportunities internationally and in the United States, and is
currently pursuing the following opportunities:

Edmonton - In September 2003, CRI subscribed to 55% of the
outstanding shares of CRA, formed in conjunction with its
application for a gaming license in Edmonton, Alberta, Canada.
The first phase of the proposed project, The Celebrations Casino
and Hotel, is planned to include a casino, food and beverage
amenities, a dinner theater, a 300 space underground parking
garage and a 40-room hotel. CRA is owned by CRI and by the owners
of the 7.25 acre property and existing hotel which will be
developed into the Celebrations project, if a license is awarded
and all other approvals and funding are

-10-


obtained. The Celebrations Casino and Hotel Project proposed by
CRA is estimated to cost 22 million Canadian dollars ($17.4
million), including the 2.50 million Canadian dollars ($2.0
million) contribution of the existing hotel and property by the
owners of the existing hotel and an approximately 3 million
Canadian dollar ($2.4 million) cash contribution by the Company
which will be funded through the revolving credit facility with
Wells Fargo Bank. We intend to fund the remaining cost of the
project through new project financing. CRI also entered into a
long-term agreement to manage the casino if a gaming license is
awarded. On April 19, 2004, the Company announced that CRA had
been selected as the only one of nine applicants to move to step
seven of eight steps of the casino licensing process in Edmonton,
Alberta, Canada. This is not an approval or a guarantee that CRA
will be issued a casino facility license. Step seven is the
"Investigation stage of the Casino Facility Application Process"
which is a thorough due diligence investigation of the applicant
and the key persons associated with the selected proposal.
Although the Company cannot predict how long the due diligence
process will take, if step seven is successfully completed, the
eighth step will be a recommendation to the Board of the Alberta
Gaming and Liquor Commission ("AGLC"), by the commission,
regarding issuance of a casino facility license. There is no
assurance that a license will be issued to CRA.

Central City, Colorado - On October 13, 2004, the Company
announced that it signed an agreement with Central City Venture
LLC ("Tollgate") to develop and operate a casino and hotel in
Central City, Colorado. The proposed $40 million development
would include a 60,000 square foot facility with 625 slot
machines, six table games, 35 hotel rooms, retail, food and
beverage amenities and a 500-space on-site covered parking garage
connected to the casino by an environmentally controlled
pedestrian walkway. The Company's contribution to the proposed
project includes an initial cash capital contribution of $3.5
million, which will be funded through the revolving credit
facility with Wells Fargo Bank, in return for a controlling 65%
interest. The Company's partner, Tollgate, will contribute three
existing non-operating casino buildings, land and land options.
We expect to fund the remaining cost of the project through new
project financing. Additionally, CRI entered into a Casino
Services Agreement to manage the property. Closing of the
agreement and completion of the project is subject to various
conditions and approvals, including, but not limited to securing
acceptable financing, satisfactory environmental studies,
licensing by the Colorado Division of Gaming, Century Casinos'
Board approval and other due diligence. Subject to satisfactorily
meeting these requirements, it is anticipated the project would
be completed in the first half of 2006.

Iowa - On October 18, 2004, the Company announced that it signed
an agreement with the owners of Landmark Gaming LLC of Franklin
County, Iowa, to jointly submit as co-applicant with the Franklin
County Development Association (FCDA) an application to the Iowa
Racing and Gaming Commission (IRGC) to develop and operate a
moored barge casino, hotel and entertainment facility in Franklin
County, Iowa. The proposed project includes a casino with
approximately 40,000 square feet of total space, 120 hotel rooms,
600 covered parking spaces and 375 surface parking spaces. The
Company's contribution to the project at closing will include an
initial cash capital contribution of $1.25 million, which will be
funded through the revolving credit facility with Wells Fargo
Bank, in return for a 40% interest. The current owners of
Landmark Gaming will contribute the land and land options in
return for 60% ownership. Additionally, an affiliate of the
Company will enter into a Casino Services Agreement to manage the
property in return for a share in gross revenues plus a share in
EBITDA. The Company's cash contribution and the beginning of
construction are subject to various conditions and approvals,
including, but not limited to

-11-


awarding of a license by the IRGC, securing acceptable financing
and other due diligence. We do not expect the IRGC to complete
their selection process before December 31, 2004.

Johannesburg - On October 20, 2003, the Company announced that
judgment had been handed down in the High Court of South Africa
compelling the Gauteng Gambling Board ("GGB") to award a casino
license to Silverstar Development Limited ("Silverstar") for the
western periphery of metropolitan Johannesburg in terms of its
original 1997 application. On November 11, 2003, the Company
announced that the GGB's subsequent application for leave to
appeal the October 20 judgment had been denied by the High Court.
On December 3, 2003, the Company announced that the GGB served
notice that it had petitioned the South African Supreme Court of
Appeal requesting a further appeal against the judgment of the
High Court. On February 5, 2004, the Supreme Court of Appeal of
South Africa overturned the ruling of the High Court and granted
the GGB's request for leave to appeal. Silverstar informed the
Company that it does not have any indication with regard to the
timing of the appeals process.

CCA, through its majority-owned subsidiary, CCWR, remains
contracted to Silverstar by a resort management agreement and
retains a right of long standing to take up a minority equity
interest in the venture although its final level of equity
interest remains to be determined. Pursuant to its 1997
application, the Silverstar project provides for up to 1,350 slot
machines and 50 gaming tables in a phased development that
includes a hotel and other entertainment, dining and recreational
activities with a first phase of 950 slot machines and 30 gaming
tables. The proposed 400 million Rand ($61.78 million)
hotel/casino resort development would be located in the greater
Johannesburg area of South Africa known as the West Rand.

In January 2000, CCI entered into a brokerage agreement with
Novomatic AG in which CCI received an option to purchase seven
eighths of the shares that Novomatic AG purchased in Silverstar.
The agreement has subsequently been amended two times, most
recently in October 2004 eliminating the put option held by
Novomatic AG, transferring the rights under the agreement from
CCI to CRL and amending the call option under which CRL can
require Novomatic AG to sell seven eighths of its shares in
Silverstar to CRL. CRL can exercise the call option within three
years of the amended and restated agreement. The price of the
option varies based upon the legal and operating status of
Silverstar. CRL can exercise the option for $1 million even if
the Silverstar casino is not operational at the time of the
exercise. If the transaction were to be completed, CRL would
acquire a 7% interest in Silverstar from Novomatic AG.

Historical transactions that are denominated in a foreign
currency are translated and presented at the United States exchange
rate in effect on the date of the transaction. Commitments that are
denominated in a foreign currency and all balance sheet accounts other
than shareholders' equity are translated and presented based on the
exchange rate at the end of the reported periods. Current period
transactions affecting the profit and loss of operations conducted in
foreign currencies are valued at the average exchange rate for the
period in which they are incurred. The exchange rates used to
translate balances at the end of the reported periods are as follows:



-12-



September 30, December 31, September 30,
2004 2003 2003

South African Rand 6.4749 6.6858 6.9537
Euros 0.8050 0.7938 0.8583
Czech Koruna 25.4310 25.6634 n/a
Canadian Dollars 1.2639 1.2924 n/a

Source: Pacific Exchange Rate Service


Certain reclassifications have been made to the 2003 financial
information in order to conform to the 2004 presentation.

The accompanying condensed consolidated financial statements and
related notes have been prepared in accordance with accounting
principles generally accepted in the United States of America ("US
GAAP") for interim financial reporting and the instructions to Form
10-Q and Rule 10-01 of Regulation S-X. The accompanying consolidated
financial statements include the accounts of CCI and its
majority-owned subsidiaries. All significant intercompany transactions
and balances have been eliminated. The financial statements of all
foreign subsidiaries consolidated herein have been converted to US
GAAP for financial statement presentation purposes. Accordingly, the
condensed consolidated financial statements are presented in
accordance with US GAAP. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
US GAAP have been condensed or omitted. In the opinion of management,
all adjustments (consisting of only normal recurring accruals)
considered necessary for fair presentation of financial position,
results of operations and cash flows have been included. These
condensed consolidated financial statements should be read in
conjunction with the financial statements and notes thereto included
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2003. The results of operations for the period ended
September 30, 2004 are not necessarily indicative of the operating
results for the full year.

2. STOCK BASED COMPENSATION

The Company has chosen to account for stock-based compensation
for employees using the intrinsic value method prescribed in
Accounting Principles Board Opinion No. 25 (APB 25), "Accounting for
Stock Issued to Employees", and related Interpretations. Accordingly,
compensation cost for stock options is measured as the excess, if any,
of the quoted market price of the Company's stock at the date of the
grant over the amount an employee must pay to acquire that stock. The
Company values stock-based compensation granted to non-employees at
fair value.

The Company's stock-based employee compensation plan expired in
April 2004. Accordingly, no new options can be granted under the plan
subsequent to April 2004, but it continues to be administered for
previously issued and outstanding options.

All options granted under the plan had an exercise price equal to
the market value of the underlying common stock on the date of the
grant. The following table illustrates the effect on net earnings and
earnings per share if the Company had applied the fair value
recognition provisions of SFAS No. 123, "Accounting for Stock-Based
Compensation", to stock-based employee compensation.


-13-








For the Three Months Ended
September 30,
Dollar amounts in thousands,
except for share information 2004 2003
---- ----
Net earnings, as reported $ 1,233 $ 914

Deduct: Total stock-based employee compensation
expense determined under fair value based
method for all awards, net of related tax effects 269 1
------- -------
Pro forma net earnings $ 964 $ 913
======= =======

Earnings per share
Basic As reported $ 0.09 $ 0.07
Pro forma $ 0.07 $ 0.07

Diluted As reported $ 0.08 $ 0.06
Pro forma $ 0.06 $ 0.06


For the Nine Months Ended
September 30,
Dollar amounts in thousands,
except for share information 2004 2003
---- ----
Net earnings, as reported $ 3,284 $ 2,420

Deduct: Total stock-based employee compensation
expense determined under fair value based
method for all awards, net of related tax effects 808 3
------- -------
Pro forma net earnings $ 2,476 $ 2,417
======= =======

Earnings per share
Basic As reported $ 0.24 $ 0.18
Pro forma $ 0.18 $ 0.18

Diluted As reported $ 0.21 $ 0.16
Pro forma $ 0.16 $ 0.16



-14-




3. CHANGE IN ACCOUNTING PRINCIPLES AND RECENTLY ISSUED STANDARDS

In December 2003, FASB revised Interpretation No. 46,
"Consolidation of Variable Interest Entities". FIN 46(R) addresses
consolidation issues by business enterprises of variable interest
entities in which 1) the equity interest at risk is not sufficient to
finance its activities without additional subordinated financial
support, 2) the equity investors lack one or more essential
characteristics of a controlling financial interest or 3) the equity
investors have voting rights that are not proportionate to their
economic interest. The Company adopted FIN 46(R) on January 1, 2004.
The Company has determined that CM (Note 8) is a variable interest
entity as defined by FIN 46 (R). The Company has also determined that
it is not the primary beneficiary as defined by FIN 46 (R) and has,
therefore, accounted for the Company's 50% interest in CM on the
equity basis. A primary beneficiary is the party that absorbs a
majority of the entity's expected losses, receives a majority of its
expected returns, or both as defined in FIN 46(R). Under the equity
method of accounting, the Company has recognized the difference
between the investment and the underlying cost of the equity as
goodwill and reported its percentage of the earnings in CM as income
from unconsolidated subsidiary.

Additionally, the Company has reviewed all recently issued, but
not yet effective, accounting pronouncements and does not believe that
any such pronouncements will have a material impact on its financial
statements.

4. INCOME TAXES

The income tax provisions are based on estimated full-year
earnings for financial reporting purposes adjusted for permanent
differences.


-15-





5.EARNINGS PER SHARE

Basic and diluted earnings per share for the three and nine
months ended September 30, 2004 and 2003 were computed as follows:



For the Three Months Ended
September 30,
Dollar amounts in thousands,
except for share information 2004 2003
---- ----
Basic Earnings Per Share:
Net earnings $ 1,233 $ 914
=========== ===========
Weighted average common shares 13,681,900 13,660,500
=========== ===========
Basic earnings per share $ 0. 09 $ 0.07
=========== ===========
Diluted Earnings Per Share:
Net earnings, as reported $ 1,233 $ 914
=========== ===========
Weighted average common shares 13,681,900 13,660,500
Effect of dilutive securities:
Stock options and warrants 2,259,753 1,050,117
----------- -----------
Dilutive potential common shares 15,941,653 14,710,617
=========== ===========
Diluted earnings per share $ 0. 08 $ 0.06
=========== ===========

Excluded from computation of diluted earnings per share
Due to antidilutive effect:
Options and warrants to
purchase common shares - -
Weighted average exercise price $ - $ -


For the Nine Months Ended
September 30,
Dollar amounts in thousands,
except for share information 2004 2003
---- ----
Basic Earnings Per Share:
Net earnings $ 3,284 $ 2,420
=========== ===========
Weighted average common shares 13,681,746 13,623,304
=========== ===========
Basic earnings per share $ 0. 24 $ 0.18
=========== ===========
Diluted Earnings Per Share:
Net earnings, as reported $ 3,284 $ 2,420
=========== ===========
Weighted average common shares 13,681,746 13,623,304
Effect of dilutive securities:
Stock options and warrants 1,910,382 1,062,136
----------- -----------
Dilutive potential common shares 15,592,128 14,685,440
=========== ===========
Diluted earnings per share $ 0. 21 $ 0.16
=========== ===========

Excluded from computation of diluted earnings per share
Due to antidilutive effect:
Options and warrants to
purchase common shares - 10,000
Weighted average exercise price $ - $ 2.28



-16-




6. CRIPPLE CREEK, COLORADO

In April 2003, the Company completed construction of a 6,022
square foot expansion and added a total of 5,000 square feet of gaming
space to Womacks. Having spanned the alley behind the existing
property, Womacks will be able to continue building out the casino to
the rear of the property on a single level at a later date.

In January 2004, the Company sold a purchase option agreement for
a property located in Cripple Creek across Bennett Ave. from Womacks
that it had held since 1999, which would have expired on March 30,
2004, to an unrelated party for a sum of $0.20 million. As a result of
the transaction, the Company recognized a pre-tax gain of $34.7
thousand in 2004, which is included in other income, net.

Womacks has installed a limited number of Ticket-in/Ticket out
("TITO") machines and is operating them under a required field trial
with the Division of Gaming. The Division of Gaming has completed its
audit of the field trial. Womacks is awaiting the Division's approval
to end the field trial so that it may expand the number of TITO
machines.

In May 2004, Womacks added an additional restaurant, the "Cut
Above Buffet", on the second floor of the casino. The restaurant
operates on a limited schedule and provides an alternative menu for
patrons of the casino.

In August 2004, Womacks added an additional bar on the mezzanine,
providing another alternative in the video poker section.

7. CALEDON, SOUTH AFRICA

In January 2003, CCA purchased the remaining 35% interest in
CCAL, becoming the sole owner of all of the common stock of CCAL. The
Company paid 21.5 million Rand ($2.53 million). In accordance with
FASB Statement No. 141, "Business Combinations", the cost of the
acquisition was allocated to the assets acquired and the liabilities
assumed based on fair values at the date of acquisition. The assets
and liabilities of CCAL, which were carried in the Company's
consolidated financial statements at the date of acquisition, had fair
values that approximated their carrying value, with the exception of
land to which $0.34 million of the acquisition price was allocated.
Simultaneous with the transaction, the hotel management agreement
between CCAL and Fortes King Hospitality (Pty) Limited ("FKH") was
cancelled and CCA assumed the management of the hotel. Financing for
the transaction was provided by the Wells Fargo Bank revolving line of
credit.

In addition to the casino license, hotel and spa, CCAL owns
approximately 600 acres of land, which may be used for future
expansion.

In June 2004, CCAL added a fourth restaurant to the already
varied selection. The most recent restaurant offers patrons an Italian
cuisine.

8. PRAGUE, CZECH REPUBLIC

In January 1999, the Company, through CCM, entered into a 20-year
agreement with Casino Millennium a.s., a Czech company ("CM"), and
with B.H. Centrum a.s., a Czech subsidiary of Bau Holding AG (now
known as Strabag AG), to operate a casino in the five-star Marriott
Hotel in Prague, Czech Republic. The Company provided technical casino
services in exchange for 10% of the casino's gross revenue, and
provided gaming equipment for 45% of the casino's net profit. The
hotel and casino opened in July 1999.

-17-


In December 2002, CMB acquired a 10% ownership interest in CM
with the payment of $0.24 million in cash. Effective January 3, 2004,
CMB, acquired an additional 40% of CM by contributing gaming equipment
with a net book value of $0.60 million. The contribution of the gaming
equipment, along with the cash contribution which was previously
accounted for by CMB on a cost basis and had a value of $0.29 million
on January 3, 2004, brought the Company's total investment in CM to
$0.89 million. The Company allocated $0.26 million to a shareholder
loan acquired as part of the transaction. CM issued additional shares
for the contribution of the gaming equipment towards the Company's
additional 40% investment in CM. The difference of $0.57 million
between the cost and the equity in CM has been recorded as goodwill.
In addition to the 50% ownership, the Company retains its rights under
the 1999 casino services agreement which, as amended in October 2003,
requires CM to make monthly payments of Euro 7,250 to CRI.

CM had approximately $2.4 million in assets as of September 30,
2004 and reported earnings or (losses) for the three and nine months
ended September 30, 2004 of approximately ($76) thousand and $6
thousand, respectively, after expensing casino services fees paid to
the Company.

The Company's estimated maximum exposure to losses at September
30, 2004 consists of the following (Amounts in thousands):



Equity investment in Casino Millennium $ 64
Goodwill 554
Note receivable 254
Other receivables 199
------------
Total $ 1,071
=============


Casino services fee income for the three months ended September
30, 2004 and 2003 was $78 thousand and $0 thousand, respectively and
for the nine months ended September 30, 2004 and 2003 was $115
thousand and $8 thousand, respectively.




9. GOODWILL (Amounts in thousands):
Balance as of December 31, 2003 $ 8,088
Goodwill recorded in the acquisition of an
additional 40% interest in Casino Millennium,
as valued on January 3, 2004 565
Effect of exchange rate on goodwill 16
-------------
Balance as of September 30, 2004 $ 8,669
=============


10. LONG-TERM DEBT

The principal balance outstanding under the Wells Fargo Bank
Revolving Line of Credit Facility ("RCF") as of September 30, 2004 was
$11.23 million compared to $11.76 million at December 31, 2003. The
amount available under the RCF as of September 30, 2004 was $9.72
million, net of amounts outstanding as of that date, compared to
$11.35 million at December 31, 2003. The loan agreement includes
certain restrictive covenants on financial ratios of WMCK. The Company
was in compliance with the covenants as of September 30, 2004. The
interest rate at September 30, 2004 was 3.9% for $10.5 million
outstanding under

-18-


LIBOR based provisions of the loan agreement. The remaining balance of
the outstanding debt is subject to interest under the prime based
provisions of the loan agreement at a rate of 4.75%. Subsequent to
September 30, 2004 an amendment to the RCF changed the aggregate
commitment reduction schedule under the RCF. Effective with the
amendment, there will be no quarterly reduction until July 1, 2005.
The available balance will be reduced by $0.3 million for two quarters
beginning July 1, 2005, by $0.6 million for two quarters beginning
January 1, 2006, and finally by $0.72 million at the beginning of each
quarter beginning July 1, 2006 until maturity in August 2007. The
change in the scheduled reduction provides the Company with
approximately $3.3 million additional availability over the next one
year and three quarters.

The fair value of the Company's interest rate swap derivatives as
of September 30, 2004 and December 31, 2003 of $0.17 million and $0.37
million, respectively, is reported as an other non-current liability
in the condensed consolidated balance sheets. The net gain on the
interest rate swaps of $35.1 thousand, net of deferred income tax
expense of $20.9 thousand for the third quarter of 2004, has been
reported in accumulated other comprehensive earnings in the
shareholders' equity section of the accompanying September 30, 2004
condensed consolidated balance sheet. The net gain on the interest
rate swaps of $0.13 million, net of deferred income tax expense of
$75.3 thousand for the first nine months of 2004, has been reported in
accumulated other comprehensive earnings in the shareholders' equity
section of the accompanying September 30, 2004 condensed consolidated
balance sheet. Net additional interest expense to the Company under
the swap agreements was $64.9 thousand and $0.16 million for the three
months ended September 30, 2004 and 2003, respectively and $0.20
million and $0.45 million for the nine months ended September 30, 2004
and 2003, respectively. Including the impact of the swaps and the
amortization of the deferred financing cost, the effective rate on the
borrowings under the RCF was 6.82% and 9.29% for the three months
ended September 30, 2004 and 2003, respectively, and 6.35% and 8.57%
for the nine months ended September 30, 2004 and 2003, respectively.

In April 2000, CCAL entered into a loan agreement with PSG
Investment Bank Limited ("PSGIB"), which was subsequently acquired by
ABSA Bank ("ABSA"), which provided for a principal loan of
approximately $6.20 million (based on an exchange rate of 7.6613 rand
per dollar at the time the funds were advanced) to fund development of
the Caledon project. The outstanding balances as of September 30, 2004
and December 31, 2003 were $3.18 million and $4.14 million,
respectively and the interest rate was 17.05%. The outstanding
balances on the standby facility with PSGIB as of September 30, 2004
and December 31, 2003 were $0.31 million and $0.41 million,
respectively and the interest rate was 15.1%. The agreement requires
quarterly installments over the remaining term of the loan. The
agreement requires a minimum deposit in the sinking fund equal to four
million Rand (approximately $0.62 million) at the end of each quarter
until maturity in June 2006. In addition, one third of the next
quarterly principal and interest payment must be deposited on the last
day of each month into the fund and used for the next quarterly
installment. The loan agreement includes certain restrictive covenants
for CCAL. CCAL was in compliance with the covenants as of September
30, 2004.

An unsecured note payable, in the amount of $0.38 million, to a
founding shareholder bears interest at 6%, payable quarterly. The
entire outstanding principal was paid on April 1, 2004. Accordingly,
the note is classified as current in the accompanying condensed
consolidated balance sheets as of December 31, 2003.

An unsecured note payable, in the amount of $90 thousand, to a
former director bears interest at 0% and is classified as current in
the accompanying condensed consolidated balance sheet as of September
30, 2004.

-19-


The remaining amount of debt of $0.25 million and $0.36, as of
September 30, 2004 and December 31, 2003, respectively, consists of
capital leases.

The consolidated weighted average interest rate on all borrowings
was 9.19% and 10.55% for the nine months ended September 30, 2004 and
2003, respectively.

11. SHAREHOLDERS' EQUITY

During the first nine months of 2004, the Company did not
purchase any shares of its common stock on the open market. The
Company issued 1,400 shares of treasury stock in February 2004 for
employee option exercises. Subsequent to September 30, 2004, the
Company has not purchased shares of its common stock on the open
market.

In January 2004, 60,000 options were issued to the Company's
outside directors with an exercise price of $3.26.

In March 2004, 1,352,710 options were granted by the independent
members of the Company's Incentive Plan Committee to eight officers
and employees of the Company with an exercise price of $2.93. The
Employee Equity Incentive Plan expired in April 2004. At the
expiration of the plan, 312,599 available remaining options were not
issued.

In connection with the granting of a gaming license to CCAL by
the Western Cape Gambling and Racing Board in April 2000, CCAL issued
a total of 200 preference shares, 100 shares each to two minority
shareholders, each of whom has one seat on the board of directors of
CCAL, neither of whom are officers, directors or affiliates of CCI.
The preference shares are not cumulative, nor are they redeemable. The
preference shares entitle the holders of the shares to dividends of
20% of the after-tax profits directly attributable to the CCAL casino
business subject to working capital and capital expenditure
requirements and CCAL loan obligations and liabilities as determined
by the directors of CCAL. Should the CCAL casino business be sold or
otherwise dissolved, the preference shareholders are entitled to 20%
of any surplus directly attributable to the CCAL casino business, net
of all liabilities attributable to the CCAL casino business. As of
September 30, 2004, no dividend has been declared for the preference
shareholders.

In July 2004 certain officers of the Company exchanged their 3.5%
minority ownership in CCA for a 3.5% minority ownership in CRL of
equal value. CCI now owns 96.5% of CRL and CRL owns 100% of CCA. CCA
owns CCAL which owns and operates The Caledon Hotel, Spa & Casino near
Cape Town, South Africa.

-20-




12. SEGMENT INFORMATION

The Company is managed in four segments; Colorado, South Africa,
Cruise Ships and Corporate and Other operations.

The operating results of the Colorado segment are those of WMCK
Venture Corp. and subsidiaries, which own Womacks Hotel and Casino
("Womacks") in Cripple Creek, Colorado.

The operating results of the South African segment are those of
Century Casinos Africa (Pty) Limited and its subsidiaries, primarily
Century Casinos Caledon (Pty) Limited, which own the Caledon Hotel,
Spa & Casino.

Cruise Ship operations include the revenue and expense of the
eight combined shipboard operations for which the Company has casino
concession agreements.

Corporate and Other operations include, among other items, the
revenue and expense of corporate gaming projects for which the Company
has secured long-term service contracts.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) is not considered a measure of performance recognized as an
accounting principle generally accepted in the United States of
America. Management believes that EBITDA is a valuable measure of the
relative performance amongst its operating segments. The gaming
industry commonly uses EBITDA as a method of arriving at the economic
value of a casino operation. It is also used by our lending
institutions to gauge operating performance. Management uses EBITDA to
compare the relative operating performance of separate operating units
by eliminating the interest income, interest expense, income tax
expense, and depreciation and amortization expense associated with the
varying levels of capital expenditures for infrastructure required to
generate revenue, and the oftentimes high cost of acquiring existing
operations.

Reclassification adjustments for 2003 have been made to the
Colorado and Corporate and Other segment presentations for corporate
bonuses that were charged to Colorado but are attributable to the
consolidated results of operations, the interest on debt incurred to
fund the purchase of the Company's acquisitions and the repurchase of
the Company's common stock, and the related tax effects. There is no
effect on the consolidated results.

-21-







Amounts in thousands Colorado South Africa Cruise Ships

As of and for the Three Months
-------------------------------
Ended September 30, 2004 2003 2004 2003 2004 2003
------------------
Net operating revenue $ 5,044 $ 5,034 $ 3,859 $ 2,647 $ 688 $ 597
Operating expenses (excluding
depreciation) $ 3,068 $ 2,970 $ 2,432 $ 1,963 $ 461 $ 365
Depreciation $ 382 $ 334 $ 318 $ 275 $ 25 $ 24
Loss from unconsolidated
subsidiary $ - $ - $ - $ - $ - $ -
Earnings (loss) from operations $ 1,594 $ 1,730 $ 1,109 $ 409 $ 202 $ 208
Interest income $ 2 $ 3 $ 35 $ 46 $ - $ -
Interest expense, including
debt issuance cost (1) $ 29 $ 23 $ (451) $ (228) $ - $ -
Other income (expense), net $ - $ 55 $ - $ (2) $ - $ 10
Non-operating income from
unconsolidated subsidiary $ - $ - $ - $ - $ - $ -
Earnings (loss) before income
taxes and minority interest $ 1,625 $ 1,811 $ 693 $ 225 $ 202 $ 218
Income tax expense (benefit) $ 618 $ 688 $ 232 $ 85 $ 6 $ 82
Minority interest $ - $ - $ - $ - $ - $ -
Net earnings (loss) $ 1,007 $ 1,123 $ 461 $ 140 $ 196 $ 136

Reconciliation to EBITDA:
Net earnings (loss) (US GAAP) $ 1,007 $ 1,123 $ 461 $ 140 $ 196 $ 136
Interest income $ (2) $ (3) $ (35) $ (46) $ - $ -
Interest expense (1) $ (29) $ (23) $ 451 $ 228 $ - $ -
Income taxes $ 618 $ 688 $ 232 $ 85 $ 6 $ 82
Depreciation $ 382 $ 334 $ 318 $ 275 $ 25 $ 24
EBITDA $ 1,976 $ 2,119 $ 1,427 $ 682 $ 227 $ 242
..



(1) The Company has not repaid the funds advanced for the
Company's acquisitions or the repurchase of the Company's common
stock, therefore the debt and accumulated interest allocated to
the Corporate & Other segment exceeded the total outstanding
borrowing under the RCF in the Colorado segment, resulting in the
reported negative interest expense for 2004.

-22-







Amounts in thousands Inter-segment
Corporate and Other Elimination Consolidated

As of and for the Three Months
- -------------------------------
Ended September 30, 2004 2003 2004 2003 2004 2003
------------------
Net operating revenue $ 78 $ - $ - $ - $ 9,669 $ 8,278
Operating expenses (excluding
depreciation) $ 829 $ 529 $ - $ - $ 6,790 $ 5,827
Depreciation $ 7 $ 42 $ - $ - $ 732 $ 675
Loss from unconsolidated
subsidiary $ (45) $ - $ - $ - $ (45) $ -
Earnings (loss) from operations $ (803) $ (571) $ - $ - $ 2,102 $ 1,776
Interest income $ 346 $ 85 $ (346) $ (85) $ 37 $ 49
Interest expense, including
debt issuance cost $ (313) $ (392) $ 346 $ 85 $ (389) $ (512)
Other income, net $ - $ 1 $ - $ - $ - $ 64
Non-operating items from
unconsolidated subsidiary $ 6 $ - $ - $ - $ 6 $ -
Earnings (loss) before income
taxes and minority interest $ (764) $ (877) $ - $ - $ 1,756 $ 1,377
Income tax expense (benefit) $ (358) $ (392) $ - $ - $ 498 $ 463
Minority interest $ (25) $ - $ - $ - $ (25) $ -
Net earnings (loss) $ (431) $ (485) $ - $ - $ 1,233 $ 914

Reconciliation to EBITDA:
Net earnings (loss) (US GAAP) $ (431) $ (485) $ - $ - $ 1,233 $ 914
Interest income $ (346) $ (85) $ 346 $ 85 $ (37) $ (49)
Interest expense $ 313 $ 392 $ (346) $ (85) $ 389 $ 512
Income taxes $ (358) $ (392) $ - $ - $ 498 $ 463
Depreciation $ 7 $ 42 $ - $ - $ 732 $ 675
EBITDA $ (815) $ (528) $ - $ - $ 2,815 $ 2,515



-23-







Amounts in thousands Colorado South Africa Cruise Ships

As of and for the Nine Months
-----------------------------
Ended September 30, 2004 2003 2004 2003 2004 2003
------------------
Property and equipment, net $ 23,790 $ 21,402 $ 14,429 $ 13,451 $ 264 $ 336
Total assets $ 33,679 $ 31,600 $ 21,104 $ 18,551 $ 1,076 $ 873

Net operating revenue $ 13,991 $ 14,246 $ 10,582 $ 7,673 $ 1,959 $ 1,285
Operating expenses (excluding
depreciation) $ 8,363 $ 8,130 $ 6,957 $ 5,535 $ 1,325 $ 849
Depreciation $ 1,055 $ 1,033 $ 972 $ 771 $ 67 $ 56
Income from unconsolidated
subsidiary $ - $ - $ - $ - $ - $ -
Earnings (loss) from operations $ 4,573 $ 5,083 $ 2,653 $ 1,367 $ 567 $ 380
Interest income $ 8 $ 10 $ 115 $ 153 $ - $ -
Interest expense, including
debt issuance cost (1) $ 84 $ (13) $ (867) $ (695) $ - $ -
Other income, net $ 35 $ 55 $ - $ (2) $ - $ 15
Non-operating items from
unconsolidated subsidiary $ - $ - $ - $ - $ - $ -
Earnings (loss) before income
taxes and minority interest $ 4,700 $ 5,135 $ 1,901 $ 823 $ 567 $ 395
Income tax expense (benefit) $ 1,786 $ 1,951 $ 547 $ 319 $ 17 $ 150
Minority interest $ - $ - $ - $ (8) $ - $ -
Net earnings (loss) $ 2,914 $ 3,184 $ 1,354 $ 496 $ 550 $ 245

Reconciliation to EBITDA:
Net earnings (loss) (US GAAP) $ 2,914 $ 3,184 $ 1,354 $ 496 $ 550 $ 245
Interest income $ (8) $ (10) $ (115) $ (153) $ - $ -
Interest expense (1) $ (84) $ 13 $ 867 $ 695 $ - $ -
Income taxes $ 1,786 $ 1,951 $ 547 $ 319 $ 17 $ 150
Depreciation $ 1,055 $ 1,033 $ 972 $ 771 $ 67 $ 56
EBITDA $ 5,663 $ 6,171 $ 3,625 $ 2,128 $ 634 $ 451


(1)The Company has not repaid the funds advanced for the Company's
acquisitions or the repurchase of the Company's common stock, therefore the
debt and accumulated interest allocated to the Corporate & Other segment
exceeded the total outstanding borrowing under the RCF in the Colorado
segment, resulting in the reported negative interest expense in 2004.

-24-







Amounts in thousands Inter-segment
Corporate and Other Elimination Consolidated

As of and for the Nine Months
-----------------------------
Ended September 30, 2004 2003 2004 2003 2004 2003
------------------
Property and equipment, net $ 636 $ 1,054 $ - $ - $ 39,119 $ 36,243
Total assets $ 2,432 $ 2,444 $ - $ - $ 58,291 $ 53,468
Net operating revenue $ 115 $ 8 $ - $ - $ 26,647 $ 23,212
Operating expenses (excluding
depreciation) $ 2,226 $ 1,571 $ - $ - $ 18,871 $ 16,085
Depreciation $ 20 $ 126 $ - $ - $ 2,114 $ 1,986
Income from unconsolidated
subsidiary $ 6 $ - $ - $ - $ 6 $ -
Earnings (loss) from operations $ (2,125) $ (1,689) $ - $ - $ 5,668 $ 5,141
Interest income $ 522 $ 257 $ (517) $ (256) $ 128 $ 164
Interest expense, including
debt issuance cost $ (935) $ (1,112) $ 517 $ 256 $ (1,201) $ (1,564)
Other income, net $ - $ 10 $ - $ - $ 35 $ 78
Non-operating items from
unconsolidated subsidiary $ (2) $ - $ - $ - $ (2) $ -
Earnings (loss) before income
taxes and minority interest $ (2,540) $ (2,534) $ - $ - $ 4,628 $ 3,819
Income tax expense (benefit) $ (1,062) $ (1,029) $ - $ - $ 1,288 $ 1,391
Minority interest $ (56) $ - $ - $ - $ (56) $ (8)
Net earnings (loss) $ (1,534) $ (1,505) $ - $ - $ 3,284 $ 2,420

Reconciliation to EBITDA:
Net earnings (loss) (US GAAP) $ (1,534) $ (1,505) $ - $ - $ 3,284 $ 2,420
Interest income $ (522) $ (257) $ 517 $ 256 $ (128) $ (164)
Interest expense $ 935 $ 1,112 $ (517) $ (256) $ 1,201 $ 1,564
Income taxes $ (1,062) $ (1,029) $ - $ - $ 1,288 $ 1,391
Depreciation $ 20 $ 126 $ - $ - $ 2,114 $ 1,986
EBITDA $ (2,163) $ (1,553) $ - $ - $ 7,759 $ 7,197


-25-






13. OTHER INCOME, NET
Other income, net, consists of the following:

For the Three Months Ended
September 30,
Amounts in thousands 2004 2003
---- ----
Interest income $ 37 $ 49
Gain on disposition of assets - 53
Foreign currency exchange gains - 11
----- -----
$ 37 $ 113
===== =====

For the Nine Months Ended
September 30,
Amounts in thousands 2004 2003
---- ----
Interest income $ 128 $ 164
Gain on disposition of assets - 59
Gain on sale of real estate option
and other assets (1) 35 19
Foreign currency exchange gains - -
----- -----
$ 163 $ 242
===== =====


(1) In January 2004, the Company sold a purchase option agreement for
a property located in Cripple Creek across Bennett Ave. from
Womacks that it had held since 1999, which would have expired on
March 31, 2004, to an unrelated party for a sum of $0.2 million.
As a result of the transaction, the Company recognized a pre-tax
gain of $34.7 thousand in 2004.


-26-




14. PROMOTIONAL ALLOWANCES

Promotional allowances presented in the condensed consolidated
statements of earnings for the period ended September 30, 2004 and
September 30, 2003 include the following:



For the Three Months Ended
September 30,

Amounts in thousands 2004 2003
---- ----
Food & Beverage and Hotel Comps $ 402 $ 379
Free Plays or Coupons 463 537
Player Points 340 369
----------- -----------
Total Promotional Allowances $ 1,205 $ 1,285
=========== ===========

For the Nine Months Ended
September 30,

Amounts in thousands 2004 2003
---- ----
Food & Beverage and Hotel Comps $ 1,127 $ 1,013
Free Plays or Coupons 1,208 1,356
Player Points 981 1,060
----------- -----------
Total Promotional Allowances $ 3,316 $ 3,429
=========== ===========


We issue free play or coupons for the purpose of generating future
revenue. Coupons are issued the month prior to when they can be redeemed
and are valid for defined periods of time ranging up to 7 days. The net win
from the coupons is expected to exceed the value of the coupons issued. The
cost of the coupons redeemed is applied against the revenue generated on
the day of the redemption.

Members of the casinos' players clubs earn points as a percentage of
coin-in. The cost of the points is offset against the revenue in the period
that the revenue generated the points. The value of the unused or
unredeemed points is included in the accounts payable and accrued
liabilities on our condensed consolidated balance sheets.


-27-




CENTURY CASINOS, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
- --------------------------------------------------------------------------------

Forward-Looking Statements, Business Environment and Risk Factors

Forward-looking statements and business environment information
contained in the following discussion of results of operations and
financial condition of the Company contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
which can be identified by the use of words such as "may", "will",
"expect", "anticipate", "estimate", or "continue", or variations thereon or
comparable terminology. In addition, all statements other than statements
of historical facts that address activities, events or developments that
the Company expects, believes or anticipates, will or may occur in the
future, and other such matters, are forward-looking statements.

The following discussion should be read in conjunction with the
Company's condensed consolidated financial statements and related notes
included elsewhere herein. The Company's future operating results may be
affected by various trends and factors, which are beyond the Company's
control. These include, among other factors, the competitive environment in
which the Company operates, the Company's present dependence upon the
Cripple Creek, Colorado and Caledon, South Africa gaming markets, changes
in the rates of gaming-specific taxes, shifting public attitudes toward the
socioeconomic costs and benefits of gaming, actions of regulatory bodies,
dependence upon key personnel, the speculative nature of gaming projects
the Company may pursue, risks associated with expansion, and other
uncertain business conditions that may affect the Company's business.

The Company cautions the reader that a number of important factors
discussed herein, and in other reports filed with the Securities and
Exchange Commission, could affect the Company's actual results and cause
actual results to differ materially from those discussed in forward-looking
statements.

-28-




Results of Operations

Three Months Ended September 30, 2004 vs. 2003
- ----------------------------------------------

The Company is managed in four segments; Colorado, South Africa, Cruise
Ships and Corporate and Other operations.

The operating results of the Colorado segment are those of WMCK Venture
Corp. and subsidiaries, which own Womacks in Cripple Creek, Colorado.

The operating results of the South African segment are those of Century
Casinos Africa (Pty) Limited and its subsidiaries, primarily Century Casinos
Caledon (Pty) Limited which own the Caledon Hotel, Spa & Casino.

Cruise Ship operations include the revenue and expense of the eight
combined shipboard operations for which the Company has casino concession
agreements.

Corporate and Other operations include, among other items, the revenue and
expense of corporate gaming projects for which the Company has secured long-term
service contracts.

Consolidated Results of Operations

The Company reported net operating revenue of $9.7 million and $8.3 million
for the three months ended September 30, 2004 and 2003, respectively. Casino
revenue for the three months ended September 30, 2004 and 2003, was $9.3 million
compared to $8.5 million, respectively. Casino expense was $3.7 million and $3.1
million for the three months ended September 30, 2004 and 2003, respectively.
General and administrative expense was $2.3 million for the three months ended
September 30, 2004 compared to $2.0 million for the three months ended September
30, 2003. Depreciation expense was $0.73 million and $0.68 million for the three
months ended September 30, 2004 and 2003, respectively.

Total Company earnings from operations were $2.1 million and $1.8 million
for the three months ended September 30, 2004 and 2003, respectively.

Income tax expense for the three months ended September 30, 2004 and 2003
was $0.50 million, and $0.46 million, respectively.

The Company's net earnings for the three months ended September 30, 2004
and 2003 were $1.23 million, or $0.09 per share, and $0.91 million, or $0.07 per
share, respectively.

A discussion by business segment follows below.


-29-




Colorado

The operating results of the Colorado segment are those of WMCK-Venture
Corp. and subsidiaries, which own Womacks in Cripple Creek, Colorado. Womacks'
results of operations for the three months ended September 30, 2004 and 2003
were as follows:



For the three months Increase % Change
ended September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino $ 5,557 $ 5,694 $ (137) -2.4%
Hotel, food and beverage 498 375 123 32.8%
Other (including promotional
allowances) (1,011) (1,035) 24 2.3%
--------- ---------
Net operating revenue 5,044 5,034 10 0.2%
--------- ---------
Costs and Expenses
Casino 1,912 1,829 83 4.5%
Hotel, food and beverage 223 119 104 87.4%
General and administrative 933 1,022 (89) -8.7%
Depreciation 382 334 48 14.4%
--------- ---------
3,450 3,304 146 4.4%
--------- ---------
Earnings from operations 1,594 1,730 (136) -7.9%
Interest (expense), net 29 23 6 26.1%
Other income, net 2 58 (56) -96.6%
--------- ---------
Earnings before income taxes 1,625 1,811 (186) -10.3%
Income tax expense 618 688 (70) -10.2%
--------- ---------
Net Earnings $ 1,007 $ 1,123 $ (116) -10.3%
========= =========


Excluded from the above results are corporate bonuses that were previously
charged to Womacks, but which are attributable to the consolidated results of
operations, the interest on debt incurred to fund the purchase of the Company's
acquisitions and the repurchase of the Company's common stock and related tax
effects. Reclassifications have been made to the Colorado and Corporate & Other
segments of the 2003 financial information in order to conform to the 2004
presentation.


-30-




Operating results for Womacks were impacted by the casino results detailed
below.



Market Data

For the three months ended September 30, 2004 2003
---- ----
Market share of the Cripple Creek market 13.2% 14.3%
Average number of slot machines 648 610
Market share of Cripple Creek gaming devices 13.5% 14.5%
Average slot machine win per day 91 dollars 99 dollars
Cripple Creek average slot machine win per day 91 dollars 101 dollars


In June 2004 an additional casino opened in Cripple Creek, bringing the
total number of casino licenses to 19 compared to 17 at the same time last year
and reduced Womacks' market share of gaming devices by 6.9%. In recent months,
the Company has spent approximately $3 million to upgrade the product mix on the
gaming floor, improve the player tracking system and introduce cashless gaming
machines. These ongoing improvements are expected to add to the customer
experience and further improve customer service. The ongoing efforts have helped
reduce the potential impact, limiting the decrease in gaming revenue to 2.4% or
4.5 points less than the reduction in market share of gaming devices.

During this period, the relative percentage of personnel cost, device fees
and the cost of participation machines to net operating revenue contributed to
the erosion in earnings from operations. Management regularly evaluates these
overhead costs to maintain a good cost benefit relationship.

During the three months ended September 30, 2004, Womacks leased
approximately an average of 37 slot machines under participation agreements from
manufacturers, on which it pays a fee calculated as a percentage of the net win.
All of the leases have short term commitment periods not exceeding three months
and are classified as operating leases. The leases can be cancelled with no more
than 30 days written notice. On a portion of the leases, the manufacturer is
guaranteed a minimum fee per day that can range from 15 dollars to 35 dollars
for the duration of the lease. In most instances, the branded games that are
being introduced to the market are not available for purchase. For financial
reporting purposes, the net win on the slot machines is included in our revenue
and the amount due to the manufacturer is recorded as an expense, in the period
during which the revenue is earned, as casino operating cost. Management makes
its decisions to introduce these machines based on the consumer demand for the
product. The amount paid under these agreements was $132 thousand and $102
thousand for the three months ended September 30, 2004 and 2003, respectively.

Management continues to focus on marketing the casino through its Gold Club
in which patrons can earn rewards, that can be redeemed for discounted or free
meals, rooms, cash and other prizes, as well as through increased TV and radio
advertising. Management continues to refine the Womacks product by upgrading
both the interior of the facilities, and modifying the slot machine mix.


-31-




Hotel, Food and Beverage

Hotel revenue, included in hotel, food and beverage revenue, increased
by 16.8%, as a result of an increase in the hotel occupancy rate to 94.4%
in 2004 from 83.6% in 2003, respectively. All of the revenue generated by
the hotel operations is derived from comps to better players, the value of
which is included in promotional allowances.

In May 2004, Womacks added an additional restaurant, the "Cut Above
Buffet", on the second floor of the casino. The restaurant operates on a
limited schedule and provides an alternative menu for patrons of the
casino. In the three months ended September 30, 2004, food and beverage
revenue increased 55.5% when compared to the same period in 2003. The cost
of food and beverage promotional allowances, which are included in casino
costs, decreased to $0.29 million in the three months ended September 30,
2004 from $0.33 million in the three months ended September 30, 2003.
Overall cost of operating the "Cut Above Buffet" accounts for the
significantly higher percentage increase in the combined cost of hotel,
food and beverage when compared to the percentage increase in the
corresponding revenue. The "Cut Above Buffet" offers a premium menu,
incurring a higher cost of sales, and has fulfilled the intention of
attracting new customers to Womacks Gold Club.

Other

The $48 thousand increase in depreciation expense when comparing the
third quarter of 2004 to the third quarter of 2003 results from an increase
of approximately $0.12 million in depreciation on new additions during the
trailing twelve months less the reduction in depreciation on assets that
are fully depreciated. The Company allocated $0.30 million in interest
expense to the Corporate & Other segment during the three months ended
September 30, 2004. Interest expense on the amounts advanced, but not
repaid, to fund the Company's acquisitions and the repurchase of the
Company's common stock is calculated using the effective rate on all
borrowings under the RCF. The Company reduces the interest expense incurred
by WMCK under the RCF by the amount of interest allocated to the Corporate
& Other segment. The Company has not repaid the funds advanced for the
Company's acquisitions or the repurchase of the Company's common stock, and
therefore the debt and accumulated interest allocated to the Corporate &
Other segment exceeded the total outstanding borrowing. As a result Womacks
reported a net negative of $29 thousand in interest expense and debt
issuance cost. During the same period in 2003, Womacks reported negative
interest expense and debt issuance cost, of $23 thousand, net of $0.39
million in interest expense allocated to the Corporate & Other segment.
Such decrease is attributable to the decrease in the weighted-average
interest rate on the borrowings under the RCF, including effects of swap
agreements, to 6.82% from 9.29% and a reduction in the average outstanding
balance under the RCF to $11.75 million during the three months ended
September 30, 2004 from $12.66 million during the three months ended
September 30, 2003.

The Colorado segment recognized income tax expense of $0.62 million in
the three months ended September 30, 2004 compared to $0.69 million in the
three months ended September 30, 2003, principally the result of a decrease
in earnings before income taxes.

-32-




South Africa

The operating results of the South African segment are those of Century
Casinos Africa (Pty) Limited and its subsidiaries, primarily Century Casinos
Caledon (Pty) Limited, which owns the Caledon Hotel, Spa & Casino.

Improvement in the Rand versus the dollar when comparing the third quarter
of 2004 to the third quarter of 2003 has had a positive impact on the reported
revenues and a negative impact on expenses.

Operating results in U.S. dollars for the three months ended September 30,
2004 and 2003 were as follows: (See next page for results in Rand)



CALEDON
For the three months ended Increase % Change
September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino $ 3,148 $ 2,256 $ 892 39.5%
Hotel, food and beverage 760 557 203 36.4%
Other (including
promotional allowances) (49) (166) 117 -70.5%
-------- --------
Net operating revenue 3,859 2,647 1,212 45.8%
-------- --------
Costs and Expenses
Casino 1,282 937 345 36.8%
Hotel, food and beverage 620 573 47 8.2%
General and administrative 524 368 156 42.4%
Depreciation 318 275 43 15.6%
-------- --------
2,744 2,153 591 27.5%
-------- --------
Earnings from operations 1,115 494 621 125.7%
Interest expense (188) (228) 40 -17.5%
Other income, net 24 36 (12) -33.33%
-------- --------
Earnings before Income Taxes 951 302 649 214.9%
Provision for income taxes 308 106 202 190.6%
-------- --------
Net Earnings $ 643 $ 196 $ 447 228.1%
======== ========

CENTURY CASINOS AFRICA
Costs and Expenses
General and administrative $ 6 $ 85 $ (79) -92.9%
-------- --------
(Income) Loss from operations (6) (85) 79 -92.9%
Interest Expense, net (261) - (261) -
Other income, net 9 8 1 12.5%
-------- --------
Earnings before Income Taxes (258) (77) (181) 235.1%
Provision for income taxes (76) (21) (55) 261.9%
-------- --------
Net Loss $ (182) $ (56) $ (126) 225.0%
======== ========

SOUTH AFRICA NET EARNINGS $ 461 $ 140 $ 321 229.3%
======== ========

Average exchange rate (Rand/USD) 6.42 7.28


-33-


Operating results in Rand for the three months ended September 30, 2004 and 2003
are as follows:



CALEDON
For the three months Increase % Change
ended September 30, (Decrease)

Rand amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino R 20,205 R 16,501 R 3,704 22.4%
Hotel, food and beverage 4,871 4,077 794 19.5%
Other (including promotional
allowances) (301) (1,222) 921 -75.4%
---------- ----------
Net operating revenue 24,775 19,356 5,419 28.0%
---------- ----------

Costs and Expenses
Casino 8,225 6,860 1,365 19.9%
Hotel, food and beverage 3,971 4,188 (217) -5.2%
General and administrative 3,369 2,692 677 25.1%
Depreciation 2,038 2,011 27 1.3%
---------- ----------
17,603 15,751 1,852 11.8%
---------- ----------
Earnings from operations 7,172 3,605 3,567 98.9%
Interest expense (1,218) (1,666) 448 -26.9%
Other income, net 156 270 (114) -42.2%
---------- ----------
Earnings before income taxes 6,110 2,209 3,901 176.6%
Provision for income taxes 1,977 779 1,198 153.8%
---------- ----------
Net Earnings R 4,133 R 1,430 R 2,703 189.0%
========== ==========

CENTURY CASINOS AFRICA
Costs and Expenses
General and administrative R 45 R 610 R (565) -92.6%
---------- ----------
Loss from operations (45) (610) 565 -92.6%
Interest Expense, net (1,680) - (1,680) -
Other income, net 64 53 11 20.8%
---------- ----------
Earnings before income taxes (1,661) (557) (1,104) 198.2%
Income tax expense (498) (163) (335) 205.5%
---------- ----------
Net Loss R (1,163) R (394) R (769) 195.2%
========== ==========

SOUTH AFRICA NET EARNINGS R 2,970 R 1,036 R 1,934 186.7%
========== ==========


-34-






Casino Market Data (in Rand)

For the three months ended September 30, 2004 2003
---- ----
Market share of the Western Cape market 6.00% 6.02%
Market share of Western Cape gaming devices 11.4% 10.9%
Average number of slot machines 290 275
Average slot machine win per day 690 Rand 598 Rand
Average number of tables 9 8
Average table win per day 2,158 Rand 1,502 Rand


The Geographical differences which separate the casinos in the Western Cape
and the gaming board's license management, impacts the results reported above.

The results discussed below are based on the Rand to eliminate the effect
of fluctuations in foreign currency exchange rates.

The 22.4% increase in the casino revenue is attributable to the successful
marketing efforts that include the introduction of cash couponing, an expanded
smoking section and improved employee and management training. The Company
markets an array of amenities at the resort to its guests as a complement to the
gaming experience. These currently include a 92-room hotel, a variety of dining
experiences, the historic mineral hot spring and spa, the outdoor experience (a
team building facility) and an equestrian center.

The 0.92 million Rand change in other revenue (including promotional
allowances) is attributable to the introduction of cash couponing in the second
quarter of 2003 and to the expanded use of player points to attract customers.

Hotel, Food and Beverage

Conferences and other functions held at the resort play a significant role
in the operation of the hotel. Management is attempting to gain additional
exposure in this area through marketing efforts. A number of repairs in the
hotel infrastructure, including electrical and plumbing, were undertaken in 2003
in order to increase the quality of the facility. Management has taken measures
to offset the inflationary pressures in South Africa which have driven up base
costs such as labor, supplies and utilities.

Hotel revenue increased 17.0% in the three months ended September 30, 2004
compared to the three months ended September 30, 2003. The average hotel
occupancy rate in the three months ended September 30, 2004 was 49.0% compared
to 56.6% in the three months ended September 30, 2003. During this same period
the average room rate increased to R417 from R319, completely offsetting the
decrease in the occupancy rate. Conference sales increased 17.0%, while leisure
sales decreased by 27.0%.

In June 2004, CCAL added a fourth restaurant to the already varied
selection. The most recent restaurant offers patrons an Italian cuisine. Food
and beverage revenue increased 23.0% in the three months ended September 30,
2004 compared to the three months ended September 30, 2003, primarily as a
result of the additional food and beverage facility, plus changes in operating
hours and a general price increase.




-35-





Other

The decrease in general and administrative expense at CCA is primarily
related to the reduction in management services paid for and provided to CCAL.

Interest expense for CCAL, including debt issuance cost, decreased 26.9% as
the principal balance of the term loans and capitalized leases are repaid. The
weighted-average interest rate on the borrowings under the ABSA loan agreement
was 16.9% in the three months ended September 30, 2004 and 2003. Interest
expense, net for CCA is comprised exclusively of interest on debt between CCA
and CRL. The interest expense is eliminated against the interest income included
in the Corporate and Other segment; consequently, there is no effect on the
consolidated net income.

Cruise Ships

Cruise ships' operating results for the three months ended September 30,
2004 and 2003 were as follows:



For the three months Increase % Change
ended September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino $ 644 $ 575 $ 69 12.0%
Other (including promotional
allowances) 44 22 22 100.0%
--------- -------
Net operating revenue 688 597 91 15.2%
--------- -------

Costs and Expenses
Casino 461 365 96 26.3%
General and administrative - -
Depreciation 25 24 1 4.2%
--------- -------
486 389 97 24.9%
--------- -------
Earnings from operations 202 208 (6) -2.9%
Other income, net - 10 (10) -100.0%
--------- -------
Earnings before income taxes 202 218 (16) -7.3%
Income tax expense 6 82 (76) -92.7%
--------- -------
Net Earnings $ 196 $ 136 $ 60 44.1%
========= ========


In the three months ended September 30, 2004, the Company operated casinos
on a total of eight ships: four on Silversea Cruises, one on the World of
ResidenSea and three on Oceania Cruises, compared to a total of seven ships
during the same period in 2003. On April 10, 2004, the Company opened a casino
aboard the Nautica, a cruise ship operated by Oceania Cruises equipped with 42
slot machines and three gaming tables.

We experience severe fluctuations in the revenue generated on each cruise
depending on the number and quality of the players and passengers. This is a
condition that we do not control. In August 2004 the Silver Wind suffered a $50
thousand loss to a single player, almost 8% of the total

-36-


ship casino revenue for the period, contributing significantly to the decrease
in earnings from operations for the three months ended September 30, 2004.

Concession fees paid to the ship operators in accordance with the
agreements accounted for $0.25 million and $0.20 million of the total casino
expenses incurred in the three months ended September 30, 2004 and 2003,
respectively. The cost of travel expenses to rotate personnel to and from the
ships accounted for an increase of $18 thousand in expenses when comparing 2004
to 2003.

The decrease in income tax expense is attributable to the assignment of the
concession agreements from CCI to CRI as of October 1, 2003. The income assigned
to CCI was taxed at a U.S. effective rate of approximately 38%. The income
assigned to CRI, the Company's wholly owned subsidiary in Mauritius, is taxed at
the statutory rate of 15%, less current tax credits of 12%, resulting in a net
rate of 3%. This tax status was effective upon incorporation, September 25,
2003.



Corporate & Other
For the three months Increase % Change
ended September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Other $ 78 $ - $ 78 100.0%
-------- --------
Net Operating Revenue 78 - 78 100.0%

Costs and Expenses
Casino - - - -
General and administrative 829 529 300 56.7%
Depreciation 7 42 (35) -83.3%
-------- --------
836 571 265 46.4%
-------- --------
Loss from unconsolidated
subsidiary (45) - 45 100.0%
-------- --------
Loss from operations (803) (571) (232) 40.6%
Interest expense (313) (392) 79 20.2%
Other income, net 346 86 260 302.3%
Non-operating items from
unconsolidated subsidiary 6 - 6 100.0%
-------- --------
Loss before income taxes
and minority interest (764) (877) (113) -12.9%
Income tax benefit (358) (392) 34 -8.7%
Minority interest (25) - (25) -
-------- --------
Net Loss $ (431) $ (485) $ 54 -11.1%
======== ========


Revenue in the corporate and other segment for the three months ended
September 30, 2004 is comprised exclusively of fees paid by Casino Millennium
under the technical services agreement.

-37-


Included in the above results are corporate bonuses that were previously
charged to Womacks, but which are attributable to the consolidated results of
operations, the interest on debt incurred to fund the Company's acquisitions and
the repurchase of the Company's common stock, and related tax effects. Included
on Other income, net for the three months ended September 30, 2004 is $0.26
million in interest income on debt between CRL and CCA. The interest income is
eliminated against the interest expense included in the South African segment;
consequently, there is no effect on the consolidated net income.
Reclassifications have been made to the Colorado and Corporate & Other segments
of the 2003 financial information in order to conform to the 2004 presentation.
Additionally, general and administrative expenses increased quarter over quarter
largely due to an increase in the current year estimate for corporate bonuses
based on management's current estimate of annual results.

The decrease in depreciation expense is attributable to the acquisition of
50% of CM. Effective January 3, 2004 CMB acquired an additional 40% of CM by
contributing gaming equipment, valued at approximately $0.60 million. The gaming
equipment, previously allocated to and depreciated in the Corporate & Other
segment, is depreciated by CM and therefore affects the income from
unconsolidated subsidiary (see Note 8 to the condensed consolidated financial
statements).

Minority interest is comprised of $24 thousand for the 3.5% minority
interest in the earnings of CRL. Income from unconsolidated subsidiary is
comprised of the Company's 50% interest in CM earnings.


-38-




Results of Operations

Nine Months Ended September 30, 2004 vs. 2003
- ---------------------------------------------

Consolidated Results of Operations

The Company reported net operating revenue of $26.6 million and $23.2
million for the nine months ended September 30, 2004 and 2003, respectively.
Casino revenue for the nine months ended September 30, 2004 and 2003, was $26.2
million compared to $23.7 million, respectively. Casino expense was $10.1
million and $8.5 million for the nine months ended September 30, 2004 and 2003,
respectively. General and administrative expense was $6.5 million for the nine
months ended September 30, 2004 compared to $5.7 million for the nine months
ended September 30, 2003. Depreciation expense was $2.1 million and $2.0 million
for the nine months ended September 30, 2004 and 2003, respectively.

Total Company earnings from operations were $5.7 million and $5.1 million
for the nine months ended September 30, 2004 and 2003, respectively.

Tax expense for the nine months ended September 30, 2004 and 2003 was $1.3
million, and $1.4 million, respectively.

The Company's net earnings for the nine months ended September 30, 2004 and
2003 were $3.3 million, or $0.24 per share, and $2.4 million, or $0.18 per
share, respectively.

A discussion by business segment follows below.

-39-




Colorado

The operating results of the Colorado segment are those of WMCK-Venture
Corp. and subsidiaries, which own Womacks in Cripple Creek, Colorado. Womacks'
results of operations for the nine months ended September 30, 2004 and 2003 were
as follows:



For the nine months Increase % Change
ended September 30, (Decrease)
Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino $ 15,503 $ 16,151 $ (648) -4.0%
Hotel, food and beverage 1,202 954 248 26.0%
Other (including promotional
allowances) (2,714) (2,859) 145 5.1%
-------- ---------
Net operating revenue 13,991 14,246 (255) -1.8%
-------- ---------
Costs and Expenses
Casino 5,190 5,042 148 2.9%
Hotel, food and beverage 454 264 190 72.0%
General and administrative 2,719 2,824 (105) -3.7%
Depreciation 1,055 1,033 22 2.1%
-------- ---------
9,418 9,163 255 -2.8%
-------- ---------
Earnings from operations 4,573 5,083 (510) -10.0%
Interest (expense), net 84 (13) 97 -746.2%
Other income, net 43 65 (22) -33.8%
-------- ---------
Earnings before income taxes 4,700 5,135 (435) -8.5%
Income tax expense 1,786 1,951 (165) -8.5%
-------- ---------
Net Earnings $ 2,914 $ 3,184 $ (270) -8.5%
======== =========


Excluded from the above results are corporate bonuses that were previously
charged to Womacks, but which are attributable to the consolidated results of
operations, the interest on debt incurred to fund the purchase of the Company's
acquisitions and the repurchase of the Company's common stock and related tax
effects. Reclassifications have been made to the Colorado and Corporate & Other
segments of the 2003 financial information in order to conform to the 2004
presentation.


-40-




Operating results for Womacks were impacted by the casino results detailed
below.



Market Data

For the nine months ended September 30, 2004 2003
---- ----
Market share of the Cripple Creek market 13.7% 14.9%
Average number of slot machines 641 625
Market share of Cripple Creek gaming devices 14.2% 14.8%
Average slot machine win per day 86 dollars 93 dollars
Cripple Creek average slot machine win per day 88 dollars 92 dollars


Womacks' market share is 1.2 percentage points lower than a year ago. In
June 2004 an additional casino opened in Cripple Creek, bringing the total
number of casino licenses to 19 compared to 17 at the same time last year and
reduced Womacks' market share of gaming devices by 4%. The Company has spent
approximately $3 million in 2004 to upgrade the product mix on the gaming floor,
improve the player tracking system and introduce cashless gaming machines. These
ongoing improvements are expected to add to the customer experience and further
improve customer service. During the first nine months of 2004, Womacks replaced
approximately 149 slot machines and added 20 slot machines to the floor.

During this period, the relative percentage of personnel cost, device fees
and the cost of participation machines to net operating revenue contributed to
the erosion in earnings from operations. Management regularly evaluates these
overhead costs to maintain a good cost benefit relationship.

During the nine months ended September 30, 2004, Womacks leased
approximately an average of 39 slot machines from manufacturers, on which it
pays a fee calculated as a percentage of the net win. All of the leases have
short term commitment periods not exceeding three months and are classified as
operating leases. The leases can be cancelled with no more than 30 days written
notice. On a portion of the leases, the manufacturer is guaranteed a minimum fee
per day that can range from 15 dollars to 35 dollars for the duration of the
lease. In most instances, the branded games that are being introduced to the
market are not available for purchase. For financial reporting purposes, the net
win on the slot machines is included in our revenue and the amount due to the
manufacturer is recorded as an expense, in the period during which the revenue
is earned, as casino operating cost. Management makes its decisions to introduce
these machines based on the consumer demand for the product. The amount paid
under these agreements was $0.32 million and $0.32 million for the nine months
ended September 30, 2004 and 2003, respectively.

Management continues to focus on marketing the casino through its Gold Club
in which patrons can earn rewards that can be redeemed for discounted or free
meals, rooms, cash and other prizes, as well as through increased TV and radio
advertising. Management continues to refine the product by upgrading both the
interior of the facilities, and modifying the slot machine mix.

-41-




Hotel, Food and Beverage

Hotel revenue, included in hotel, food and beverage revenue, increased by
16.7%, as a result of an increase in the hotel occupancy rate to 98.5% in 2004
from 85.7% in 2003, respectively. All of the revenue generated by the hotel
operations is derived from comps to better players, the value of which is
included in promotional allowances.

In May 2004, Womacks added an additional restaurant, the "Cut Above
Buffet", on the second floor of the casino. The restaurant operates on a limited
schedule and provides an alternative menu for patrons of the casino. In the nine
months ended September 30, 2004 food and beverage revenue increased 36.0% when
compared to the same period in 2003. In the first quarter of 2003, the Gold Mine
restaurant was closed and Bob's Grill was expanded in order to provide better
service on the gaming floor and improve accessibility. The cost of food and
beverage promotional allowances, which are included in casino costs, decreased
to $0.84 million in the first nine months of 2004 from $.95 million in the first
nine months of 2003. Overall cost of operating the "Cut Above Buffet" accounts
for the significantly higher percentage increase in the combined cost of hotel
food and beverage when compared to the percentage increase in the corresponding
revenue. The "Cut Above Buffet" offers a premium menu, incurring a higher cost
of sales, and has fulfilled the intention of attracting new customers to Womacks
Gold Club.

Other

The Company allocated $0.91 million in interest expense to the Corporate &
Other segment during the first nine months of 2004. Interest expense on the
amounts advanced, but not repaid, to fund the Company's acquisitions and the
repurchase of the Company's common stock is calculated using the effective rate
on all borrowings under the RCF. The Company reduces the interest expense
incurred by WMCK under the RCF by the amount of interest allocated to the
Corporate & Other segment. The Company has not repaid the funds advanced for the
Company's acquisitions or the repurchase of the Company's common stock, and
therefore the debt and accumulated interest allocated to the Corporate & Other
segment exceeded the total outstanding borrowing. As a result Womacks reported a
net negative $84 thousand in interest expense and debt issuance cost. During the
same period in 2003, Womacks reported interest expense and debt issuance cost,
of $13 thousand, net of $1.1 million in interest expense allocated to the
Corporate & Other segment. Such decrease is attributable to the decrease in the
weighted-average interest rate on the borrowings under the RCF, including
effects of swap agreements, to 6.35% from 8.57% and a reduction in the average
outstanding balance under the RCF to $11.5 million in the first nine months of
2004 from $13.2 million in the first nine months of 2003.

In January 2004, the Company sold a purchase option agreement that it had
held since 1999, which would have expired on September 30, 2004, to an unrelated
party for a sum of $0.20 million. As a result of the transaction, the Company
recognized a pre-tax gain of $34.7 thousand in 2004, which is included in Other
income, net.

The Colorado segment recognized income tax expense of $1.79 million in the
first nine months of 2004 versus $1.95 million in the first nine months of 2003,
principally the result of a decrease in earnings before income taxes.

-42-




South Africa

The operating results of the South African segment are those of Century
Casinos Africa (Pty) Limited and its subsidiaries, primarily Century Casinos
Caledon (Pty) Limited, which owns the Caledon Hotel, Spa & Casino.

Improvement in the Rand versus the dollar when comparing the first nine
months of 2004 to the first nine months of 2003 has had a positive impact on the
reported revenues and a negative impact on expenses.

-43-




Operating results in U.S. dollars for the nine months ended September 30,
2004 and 2003 were as follows: (See next page for results in Rand)



CALEDON
For the nine months Increase % Change
ended September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino $ 8,872 $ 6,275 $ 2,597 41.4%
Hotel, food and beverage 1,995 1,616 379 23.5%
Other (including promotional
allowances) (285) (218) (67) 30.7%
--------- ---------
Net operating revenue 10,582 7,673 2,909 37.9%
--------- ---------
Costs and Expenses
Casino 3,617 2,609 1,008 38.6%
Hotel, food and beverage 1,791 1,578 213 13.5%
General and administrative 1,491 1,077 414 38.4%
Depreciation 972 771 201 26.1%
--------- ---------
7,871 6,035 1,836 30.4%
--------- ---------
Earnings from operations 2,711 1,638 1,073 65.5%
Interest expense (605) (695) 90 12.9%
Other income, net 96 127 (31) -24.4%
--------- ---------
Earnings before Income Taxes 2,202 1,070 1,132 105.8%
Provision for income taxes 635 387 248 64.1%
--------- ---------
Net Earnings $ 1,567 $ 683 $ 884 129.4%
========= =========

CENTURY CASINOS AFRICA
Costs and Expenses
General and administrative $ 58 $ 271 $ (213) -78.6%
--------- --------
(Income) Loss from operations (58) (271) 213 -78.6%
Interest Expense, net (261) - (261) -
Other income, net 18 24 (6) -25.0%
--------- --------
Earnings before Income Taxes (301) (247) (54) 21.9%
Provision for income taxes (88) (68) (20) 29.4%
--------- --------
Net Loss $ (213) $ (179) $ (34) 19.0%
========= ========
MINORITY INTEREST EXPENSE $ - $ (8) $ (8) -100.00%
-------- --------
SOUTH AFRICA NET EARNINGS $ 1,354 $ 496 $ 858 172.9%
========= ========

Average exchange rate (Rand/USD) 6.56 7.71



-44-




Operating results in Rand for the nine months ended September 30, 2004 and 2003
are as follows:



CALEDON
For the nine months Increase % Change
ended September 30, (Decrease)

Rand amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino R 58,203 R 48,400 R 9,803 20.3%
Hotel, food and beverage 13,076 12,485 591 4.7%
Other (including promotional
allowances) (1,834) (1,614) (220) 13.6%
-------- --------
Net operating revenue 69,445 59,271 10,174 17.2%
-------- --------
Costs and Expenses
Casino 23,713 20,145 3,568 17.7%
Hotel, food and beverage 11,753 12,191 (438) -3.6%
General and administrative 9,812 8,322 1,490 17.9%
Depreciation 6,384 5,950 434 7.3%
-------- --------
51,662 46,608 5,054 10.8%
-------- --------
Earnings from operations 17,783 12,663 5,120 40.4%
Interest expense (3,984) (5,385) 1,401 -26.0%
Other income, net 633 991 (358) -36.1%
-------- --------
Earnings before Income Taxes 14,432 8,269 6,163 74.5%
Income tax expense 4,168 2,997 1,171 39.1%
-------- --------
Net Earnings R 10,264 R 5,272 R 4,992 94.7%
======== ========

CENTURY CASINOS AFRICA
Costs and Expenses
General and administrative R 404 R 2,083 R (1,679) -80.6%
-------- --------
Loss from operations (404) (2,083) 1,679 -80.6%
Interest Expense, net (1,680) - (1,680) -
Other income, net 122 185 (63) -34.1%
-------- --------
Earnings before Income Taxes (1,962) (1,898) (64) 3.4%
Provision for income taxes (575) (549) (26) 4.7%
-------- --------
Net Loss R (1,387) R (1,349) R (38) -2.8%
======== ========

MINORITY INTEREST EXPENSE R - R (71) R (71) -
-------- --------
SOUTH AFRICA NET EARNINGS R 8,877 R 3,852 R 5,025 130.5%
======== ========


-45-




Casino Market Data (in Rand)



For the nine months ended September 30, 2004 2003
---- ----
Market share of the Western Cape market 5.9% 6.0%
Market share of Western Cape gaming devices 11.2% 10.9%
Average number of slot machines 285 275
Average slot machine win per day 680 Rand 589 Rand
Average number of tables 9 8
Average table win per day 2083 Rand 1,716 Rand


The Geographical differences which separate the casinos in the Western Cape
and the gaming board's license management, impacts the results reported above.

The results discussed below are based on the Rand to eliminate the effect
of fluctuations in foreign currency exchange rates.

The 20.3% increase in the casino revenue is attributable to the successful
marketing efforts that include introduction of cash couponing, an expanded
smoking section and improved employee and management training. The Company
markets an array of amenities at the resort to its guests as a complement to the
gaming experience. These currently include a 92-room hotel, a variety of dining
experiences, the historic mineral hot spring and spa, the outdoor experience (a
team building facility) and an equestrian center.

The 0.2 million Rand change in other revenue (including promotional
allowances) is attributable to the introduction of cash couponing in the second
quarter of 2003 and to the expanded use of player points to attract customers.

Hotel, Food and Beverage

Conferences and other functions held at the resort play a significant role
in the operation of the hotel. Management is attempting to gain additional
exposure in this area through marketing efforts. A number of repairs in the
hotel infrastructure, including electrical and plumbing, were undertaken in 2003
in order to increase the quality of the facility. Management has taken measures
to offset the inflationary pressures in South Africa which have driven up base
costs such as labor, supplies and utilities.

Hotel revenue decreased 2.0% in the first nine months of 2004 compared to
the first nine months of 2003. The average hotel occupancy rate in the first
nine months of 2004 was 49.4% compared to 56.5% in the first nine months of
2003. Conference sales decreased 18.0%, while leisure sales improved 14.0%.

In June 2004, CCAL added a fourth restaurant to the already varied
selection. The most recent restaurant offers patrons an Italian cuisine. Food
and beverage revenue increased 10.0% in the first nine months of 2004 compared
to the first nine months of 2003, as a result of the additional food and
beverage facility, plus changes to operating hours and a general price increase.


Other

The decrease in general and administrative expense at CCA is primarily
related to the reduction in management services paid for and provided to CCAL.

-46-


Interest expense for CCAL, including debt issuance cost, decreased 26.0% as
the principal balance of the term loans and capitalized leases are repaid. The
weighted-average interest rate on the borrowings under the ABSA loan agreement
was 16.9% in the first nine months of 2004 and 2003. Income tax expense for the
current year has been reduced by 0.73 million Rand as a result of an adjustment
to the prior years' tax liability. Interest expense, net for CCA is comprised
exclusively of interest on debt between CCA and CRL. The interest expense is
eliminated against the interest income included in the Corporate and Other
segment; consequently, there is no effect on the consolidated net income.


Cruise Ships

Cruise ships' operating results for the nine months ended September 30,
2004 and 2003 were as follows:



For the nine months Increase % Change
ended September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Casino $ 1,848 $ 1,244 $ 604 48.6%
Other (including promotional
allowances) 111 41 70 170.7%
------- -------
Net operating revenue 1,959 1,285 674 52.5%
------- -------

Costs and Expenses
Casino 1,325 846 479 56.6%
General and administrative - 3 (3)
Depreciation 67 56 11 19.6%
------- -------
1,392 905 487 53.8%
------- -------
Earnings from operations 567 380 187 49.2%
Other income, net - 15 (15) -100.0%
------- -------
Earnings before income taxes 567 395 172 43.5%
Income tax expense 17 150 (133) -88.7%
------- -------
Net Earnings $ 550 $ 245 $ 305 124.5%
======= =======


In the first nine months of 2004, the Company operated casinos on a total
of eight ships: four on Silversea Cruises, one on the World of ResidenSea and
three on Oceania Cruises, compared to a total of seven ships during the same
period in 2003. Two ships, the Silver Cloud and the Insignia, resumed operations
late in the first quarter of 2004. The Silver Cloud, a cruise ship operated by
Silversea Cruises, resumed its operations on March 27, 2004 following five
months of periodic maintenance. The Insignia, a cruise ship operated by Oceania
Cruises, resumed its operations on March 29, 2004 following its five-month
inaugural voyage, which ended in September 2003. On April 10, 2004, the Company
opened a casino aboard the Nautica, a cruise ship operated by Oceania Cruises.
The casino is equipped with 42 slot machines and three gaming tables.

We experience severe fluctuations in the revenue generated on each cruise
depending on the number and quality of the players and passengers. This is a
condition that we do not control. In

-47-


August 2004 the Silver Wind suffered a $50 thousand loss to a single player,
almost 3% of the total ship casino revenue for the period, significantly
reducing the earnings from operations for the nine months ended September 30,
2004.

Concession fees paid to the ship operators in accordance with the
agreements accounted for $0.73 million and $0.41 million of the total casino
expenses incurred in the first nine months ended September 30, 2004 and 2003,
respectively. The cost of travel expenses to rotate personnel to and from the
ships accounted for an increase of $23 thousand in expenses when comparing the
first nine months of 2004 to 2003. Ship personnel are rotated on and off the
ships and the end of their contracts or as needed. In the first nine months of
2004 there were two ships out of service for a period of two months each
compared to three ships that were out of service for periods ranging from three
to five months in 2003, accounting for the majority if the increase in casino
expenses in the ship segment.

The decrease in income tax expense is attributable to the assignment of the
concession agreements from CCI to CRI as of October 1, 2003. The income assigned
to CCI was taxed at a U.S. effective rate of approximately 38%. The income
assigned to CRI, the Company's wholly owned subsidiary in Mauritius, is taxed
the statutory rate of 15%, less current tax credits of 12%, resulting in a net
rate of 3%.

-48-






Corporate & Other
For the nine months Increase % Change
ended September 30, (Decrease)

Dollar amounts in thousands 2004 2003
---- ----
Operating Revenue
Other $ 115 $ 8 $ 107 1337.5%
--------- ---------
Net Operating Revenue 115 8 107 1337.5%

Costs and Expenses
Casino - - - -
General and administrative 2,226 1,571 655 41.7%
Depreciation 20 126 (106) -84.1%
--------- ---------
2,246 1,697 549 32.4%
--------- ---------
Income from unconsolidated
subsidiary 6 - 6 100.0%
--------- ---------
Loss from operations (2,125) (1,689) (436) 25.8%
Interest expense (935) (1,112) (177) -15.9%
Other income, net 522 267 255 95.5%
Non-operating items from
unconsolidated subsidiary (2) - (2) 100.0%
--------- ---------
Loss before income taxes
and minority interest (2,540) (2,534) (6) -0.2%
Income tax benefit (1,062) (1,029) (33) -3.2%
Minority interest (56) - (56) 100.0%
--------- ---------
Net Loss $ (1,534) $ (1,505) $ (29) -1.9%
========= =========


Revenue in the corporate and other segment for the nine months ended
September 30, 2004 and 2003 is comprised exclusively of fees paid by Casino
Millennium under the technical services agreement.

Included in the above results are corporate bonuses that were previously
charged to Womacks, but which are attributable to the consolidated results of
operations, the interest on debt incurred to fund the Company's acquisitions and
the repurchase of the Company's common stock, and related tax effects. Included
on Other income, net for the nine months ended September 30, 2004 is $0.26
million in interest income on debt between CRL and CCA. The interest income is
eliminated against the interest expense included in the South African segment;
consequently, there is no effect on the consolidated net income.
Reclassifications have been made to the Colorado and Corporate & Other segments
of the 2003 financial information in order to conform to the 2004 presentation.
Additionally, general and administrative expenses increased year to date 2004
over year to date 2003 largely due to an increase in the current year estimate
for corporate bonuses based on management's current estimate of annual results.

The decrease in depreciation expense is attributable to the acquisition of
50% of CM. Effective January 3, 2004, the Company through its wholly-owned
subsidiary, CMB, acquired an additional 40% of CM by contributing gaming
equipment, valued at approximately $0.60 million. The gaming

-49-


equipment, previously allocated to and depreciated in the Corporate & Other
segment, is depreciated by CM and therefore affects the income from
unconsolidated subsidiary (see Note 8 to the condensed consolidated financial
statements).

Minority interest is comprised of $56 thousand for the 3.5% minority
interest in the earnings of CRL. Income from unconsolidated subsidiary is
comprised of the Company's 50% interest in CM earnings.

Liquidity and Capital Resources

Cash and cash equivalents totaled $5.0 million plus restricted cash of
$0.62 million at September 30, 2004, and the Company had deficit working capital
of $1.37 million. Additional liquidity may be provided by the Company's
revolving credit facility ("RCF") with Wells Fargo Bank, under which the Company
had a total commitment of $26 million ($20.95 million net of the quarterly
reduction) and unused borrowing capacity of approximately $9.72 million at
September 30, 2004. The maturity date of the borrowing commitment is August
2007. Subsequent to September 30, 2004 an amendment to the RCF changed aggregate
commitment reduction schedule under the RCF. Effective with the amendment, there
will be no quarterly reduction until July 1, 2005. The available balance will be
reduced by $0.3 million for two quarters beginning July 1, 2005, by $0.6 million
for two quarters beginning January 1, 2006, and finally by $0.72 million at the
beginning of each quarter beginning July 1, 2006 until maturity in August 2007.
The change in the scheduled reduction provides the Company with approximately
$3.3 million additional availability over the next one and three quarter years.
The Company has the flexibility to use the funds for various business projects
and investments.

For the nine months ended September 30, 2004, cash provided by operating
activities was $5.8 million compared with $3.9 million in the prior-year period.
Please refer to the condensed consolidated statements of cash flows and
management's discussion of the results of operation by segment.

Cash used in investing activities of $3.5 million for the first nine months
of 2004 include $0.4 million towards the upgrade of the slot accounting system,
$1.9 million towards new slot games, $48 thousand for new slot stools and $24
thousand for restaurant equipment at Womacks, $0.9 million in improvements to
the property in Caledon, South Africa, $0.17 million in expenditures to outfit
the cruise ships and $0.3 million in expenditures for other long-lived assets,
less $0.2 million in proceeds from the disposition of assets. Cash used in
investing activities of $2.7 million for the first nine months of 2003 consisted
of: $0.7 million towards the expansion of the Womacks casino at the rear of the
property that was completed in the second quarter of 2003, providing additional
gaming space; $0.5 million for additional improvements to the property in
Caledon, South Africa, including $61 thousand additional capitalized building
costs related to the original construction; $1.3 million towards the purchase of
the remaining 35% interest in Century Casinos Caledon (Pty) Limited, $1.0
million of which was applied against the minority shareholder liability and $0.3
million of which increased the carrying value of the land in Caledon; $0.2
million principally for outfitting one of the two new casinos aboard the luxury
cruise ships operated by Oceania and to finish re-outfitting the Silver Wind;
$0.3 million due to expenditures for other long-lived assets, net of $0.3
million in proceeds from the disposition of assets; and a decrease of $49
thousand in restricted cash.

Cash used in financing activities of $2.1 million for the first nine months
of 2004 consisted of net repayments of $0.5 million under the RCF with Wells
Fargo, net repayments of $1.1 million under the loan agreement with ABSA,
repayment of a $0.4 million from a founding shareholder, and other net
repayments of $0.2 million, less net borrowing of $90 thousand from a former
director and $2 thousand in proceeds from the exercise of stock options. Cash
used in financing activities of $2.2

-50-


million for the first nine months of 2003 consisted of net borrowings of $0.4
million under the RCF with Wells Fargo plus $8 thousand in proceeds from the
exercise of stock options, less net repayments of $0.9 million under the loan
agreement with ABSA, $1.3 million to acquire a loan to CCAL held by an
unaffiliated minority shareholder; $1.0 million towards the repurchase of
Company's stock on the open market at cost; $0.3 million towards the purchase of
132,184 shares of common stock from a former director, at a per share price of
$2.26; and other net repayments of $0.4 million.

In January 2000, CCI entered into an agreement with Novomatic AG in which
CCI received an option to purchase seven eighths of the shares that Novomatic AG
purchased in Silverstar at a price equal to 85% of their fair market value at
the time of exercise. The agreement has subsequently been amended two times,
most recently in October 2004 eliminating the put option held by Novomatic AG
transferring the rights under the agreement from CCI to CRL and amending the
call option under which CRL can require can require Novomatic AG to sell seven
eighths of its shares in Silverstar to CRL. CRL can exercise the option for $1
million even if the Silverstar casino is not operational at the time of the
exercise. The price of the option cannot be determined for the remaining
situations at this time. If the transaction were to be completed, CRL would
acquire a 7% interest in Silverstar from Novomatic AG.

CRA has submitted an application to the Alberta Gaming and Liquor
Commission ("AGLC") for an additional casino facility license in the greater
Edmonton area. The first phase of the proposed project, The Celebrations Casino
and Hotel, is planned to include a casino, food and beverage amenities, a dinner
theater, a 300 space underground parking garage and a 40-room hotel. CRA is
owned by CRI (previously named CRL), a wholly owned subsidiary of the Company
and by 746306 Alberta Ltd, the owners of the 7.25 acre property and existing
hotel which will be developed into the Celebrations project, if a license is
awarded and all other approvals and funding are obtained. The Celebrations
Casino and Hotel Project proposed by CRA is valued at 22 million Canadian
dollars ($17.4 million), including the contribution of the existing hotel and
property, valued at 2.5 million Canadian dollars ($2.0 million) by the owners of
the existing hotel and an approximately 3 million Canadian dollar ($2.4 million)
cash contribution by the Company which will be funded through the revolving
credit facility with Wells Fargo Bank. The remaining cost of the project will be
funded through new project financing. On April 19, 2004, the Company announced
that CRA had been selected as the only one of nine applicants to move to step
seven of eight steps of the casino licensing process in Edmonton, Alberta,
Canada. This is not an approval or a guarantee that the CRA will be issued a
casino facility license. Step seven is the "Investigation stage of the Casino
Facility Application Process" which is a thorough due diligence investigation of
the applicant and the key persons associated with the selected proposal.
Although the Company cannot predict how long the due diligence process will
take, once step seven is successfully completed, the eighth step will be a
recommendation to the Board of the AGLC, by the evaluating committee, regarding
issuance of a casino facility license. There is no assurance that a license will
be issued to CRA.

On October 13, 2004, the Company announced that it has signed an agreement
with Central City Venture LLC ("Tollgate") to develop and operate a casino and
hotel in Central City, Colorado. The proposed $40.0 million development includes
a 60,000 square foot facility with 625 slot machines, six table games, 35 hotel
rooms, retail, food and beverage amenities and a 500-space on-site covered
parking garage connected to the casino by an environmentally controlled
pedestrian walkway. The Company's contribution to the proposed project includes
an initial cash capital contribution of $3.5 million, which will be funded
through the revolving credit facility with Wells Fargo Bank, in return for a
controlling 65% interest. The Company's partner, Tollgate, will contribute three
existing non-operating casino buildings, land and land options. We expect to
fund the remaining cost of the project through new project financing.
Additionally, CRI entered into a Casino Services Agreement to

-51-


manage the property. Closing of the agreement and completion of the project is
subject to various conditions and approvals, including, but not limited to
securing acceptable financing, satisfactory environmental studies, licensing by
the Colorado Division of Gaming, Century Casinos' Board approval and other due
diligence.

On October 18, 2004, the Company announced that it signed an agreement with
the owners of Landmark Gaming LLC of Franklin County, Iowa, to jointly submit as
co-applicant with the Franklin County Development Association (FCDA) an
application to the Iowa Racing and Gaming Commission (IRGC) to develop and
operate a moored barge casino, hotel and entertainment facility in Franklin
County, Iowa. The proposed project includes a casino with approximately 40,000
square feet of total space, 120 hotel rooms, 600 covered parking spaces and 375
surface parking spaces. The Company's contribution to the project at closing
will include an initial cash capital contribution of $1.25 million, which will
be funded through the revolving credit facility with Wells Fargo Bank, in return
for a 40% interest. The current owners of Landmark Gaming will contribute the
land and land options in return for 60% ownership. Additionally, an affiliate of
the Company will enter into a Casino Services Agreement to manage the property
in return for a share in gross revenues plus a share in EBITDA. The Company's
cash contribution and the beginning of construction are subject to various
conditions and approvals, including, but not limited to awarding of a license by
the IRGC, securing acceptable financing and other due diligence. We do not
expect the IRGC to complete their selection process before December 31, 2004.

In January 2004, the Company signed commitments for gaming equipment and
upgrades to its slot accounting system at Womacks totaling approximately $3.0
million. As of September 30, 2004 the Company has expended or accrued $2.9
million towards the commitments.

The Company's Board of Directors has approved a discretionary program to
repurchase up to $5 million of the Company's outstanding common stock. During
the first nine months of 2004, the Company did not purchase any shares of its
common stock on the open market. Through September 30, 2004, the Company had
repurchased 2,559,004 shares of its common stock at a total cost of
approximately $3.8 million.

Management believes that the Company's cash at September 30, 2004, together
with expected cash flows from operations, its borrowing capacity under the RCF
and its ability to secure additional project financing with competitive terms
will be sufficient to fund its anticipated capital expenditures, pursue
additional business growth opportunities for the foreseeable future, and satisfy
its debt repayment obligations. There is a risk that the Company cannot obtain
the financing necessary to pursue the proposed projects in Central City Colorado
and Iowa.

Critical Accounting Policies

In accordance with recent Securities and Exchange Commission guidance,
those material accounting policies that we believe are the most critical to an
investor's understanding of the Company's financial results and condition and/or
require complex management judgment have been expanded and are discussed below.

Consolidation - The accompanying consolidated financial statements include the
accounts of CCI and its majority-owned subsidiaries. All significant
intercompany transactions and balances have been eliminated. The financial
statements of all foreign subsidiaries consolidated herein have been converted
to US GAAP for financial statement presentation purposes. Accordingly, the
consolidated financial statements are presented in accordance with US GAAP.

-52-


In January 2004, the Company adopted FASB revised Interpretation 46 ("FIN 46
(R)"), "Consolidation of Variable Interest Entities". FIN 46(R) addresses
consolidation issues by business enterprises of variable interest entities in
which 1) the equity interest at risk is not sufficient to finance its activities
without additional subordinated financial support, 2) the equity investors lack
one or more essential characteristics of a controlling financial interest or 3)
the equity investors have voting rights that are not proportionate to their
economic interest. The Company has determined that CM (Note 8) is a variable
interest entity as defined by FIN 46 (R). The Company has also determined that
it is not the primary beneficiary as defined by FIN 46 (R) and has, therefore,
accounted for the Company's 50% interest in CM under the equity method.

Revenue Recognition - Casino revenue is the net win from gaming activities,
which is the difference between gaming wins and losses. Management and
consulting fees are recognized as revenue as services are provided unless their
collectability is doubtful, in which case they are recognized on a cash basis.
The incremental amount of unpaid progressive jackpot is recorded as a liability
and a reduction of casino revenue in the period during which the progressive
jackpot increases.

Goodwill and Other Intangible Assets - The Company's goodwill results from the
acquisitions of casino and hotel operations.

SFAS No. 142 "Goodwill and Other Intangible Assets" addresses the methods used
to capitalize, amortize and to assess impairment of intangible assets, including
goodwill resulting from business combinations accounted for under the purchase
method. Effective with the adoption of SFAS No. 142, the Company no longer
amortizes goodwill and other intangible assets with indefinite useful lives,
principally deferred casino license costs. In evaluating the Company's
capitalized casino license cost related to CCAL, which comprises principally all
of its other intangible assets, management considered all of the criteria set
forth in SFAS No. 142 in determining its useful life. Of particular significance
in that evaluation was the existing regulatory provision for annual renewal of
the license at minimal cost and the current practice of the Western Cape
Gambling and Racing Board ("Board") of granting such renewals as long as all
applicable laws are complied with, as well as compliance with the original
conditions of the casino operator license as set forth by the Board. Among other
things, the Company also evaluated the following criteria; 1) the high value of
the assets it has placed in service and the significant barrier that a high
initial investment poses to potential competitors, 2) the future potential of
the resort property, 3) the unique attraction of the resort property, 4) the
dependence of the hotel and other amenities of the resort property upon the
casino operation, and 5) the intentions of the Company to operate the casino
indefinitely. Based on its evaluation, the Company has deemed the casino license
costs to have an indefinite life. Goodwill recognized in the acquisition of 40%
of the outstanding stock of CM, which has been accounted for on the equity
method, was $0.57 million. Included in assets at September 30, 2004 is
unamortized goodwill of approximately $8.67 million and unamortized casino
license costs of approximately $1.88 million. The Company will continue to
assess goodwill and other intangibles for impairment at least annually.
Management has not identified any impairment indicators with respect to the
casino license or goodwill during the three and nine months ended September 30,
2004.

Impairment of Long-Lived Assets - The Company reviews long-lived assets for
possible impairment whenever events or circumstances indicate that the carrying
amount of an asset may not be recoverable. If there is an indication of
impairment, which is estimated as the difference between anticipated
undiscounted future cash flows and carrying value, the carrying amount of the
asset is written down to its estimated fair value by a charge to operations.
Fair value is estimated based on the present value of estimated future cash
flows using a discount rate commensurate with the risk involved. Estimates of
future cash flows are inherently subjective and are based on management's best
assessment of expected future conditions.

-53-


The carrying value of the non-operating property held for sale in Wells Nevada,
is subject to periodic evaluation. The property has been listed for sale since
April 1998. In 2001 we attempted to reach agreement with an interested
third-party that would have recouped our investment through a long-term lease
agreement that contained a purchase option, which enabled us to conclude that
the carrying value was still reasonable. We could not reach an agreement and, as
the result of no further activity, reduced the value of the property to its
estimated fair value in 2002. An appraisal of the property, which was completed
on January 26, 2004, continues to support the net fair value of the assets as
recorded in the Consolidated Balance Sheet as of September 30, 2004.

Foreign Exchange - Current period transactions affecting the profit and loss of
operations conducted in foreign currencies are valued at the average exchange
rate for the period in which they are incurred. Except for equity transactions
and balances denominated in U.S. dollars, the balance sheet is translated based
on the exchange rate at the end of the period.

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CENTURY CASINOS, INC. AND SUBSIDIARIES
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
- --------------------------------------------------------------------------------

We are exposed to market risk principally related to changes in interest
rates and foreign currency exchange rates. To mitigate some of these risks, we
utilize derivative financial instruments to hedge these exposures. We do not use
derivative financial instruments for speculative or trading purposes. All of the
potential changes noted below are based on information available at September
30, 2004. Actual results may differ materially.

Interest Rate Sensitivity

The Company is subject to interest rate risk on the outstanding borrowing
under the RCF with Wells Fargo Bank. Interest on the agreement is variable based
on the interest rate option selected by the Company, whereby the interest on the
outstanding debt is subject to fluctuations in the prime interest rate as set by
Wells Fargo, or LIBOR.

In order to minimize the risk of increases in the prime rate or LIBOR, the
Company has one remaining interest-rate swap agreement on a total of $4.0
million notional amount of debt. In 1998, the Company entered into a five-year
interest rate swap agreement that matured on October 1, 2003 on $7.5 million
notional amount of debt under the RCF, whereby the Company paid a LIBOR-based
fixed rate of 5.55% and received a LIBOR-based floating rate reset quarterly
based on a three-month rate. In May 2000, the Company entered into a second
five-year interest rate swap agreement which matures on July 1, 2005 on $4.0
million notional amount of debt under the RCF, whereby the Company pays a
LIBOR-based fixed rate of 7.95% and receives a LIBOR-based floating rate reset
quarterly based on a three-month rate. Generally, the swap arrangement is
advantageous to the Company to the extent that interest rates increase in the
future and disadvantageous to the extent that they decrease. Therefore, by
entering into the interest rate swap agreements, we have a cash flow risk when
interest rates drop. With the expiration of the swap agreement on the $7.5
million notional amount of debt on October 1, 2003, each hypothetical 100 basis
point increase results in an increased use of $40 thousand in cash on an annual
basis. In an environment of falling interest rates, as we have seen in the last
two years, the swap agreements are disadvantageous. Without the swap agreements
the weighted-average interest rate on the RCF for the three months ended
September 30, 2004 and 2003 would have been 4.60% and 4.47%, respectively and
for the nine months ended September 30, 2004 and 2003 would have been 4.01% and
4.00%. The Company has not entered into any new swap agreements subsequent to
September 30, 2004.

Foreign Currency Exchange Risk

A total of 39.7% of our revenue for the nine months ended September 30,
2004 was derived from our South African operations and principally denominated
in South African Rand. A total of 39.4% of our expenses for the nine months
ended September 30, 2004 were paid in currencies other than US dollars of which
37.9% were paid in South African Rand and 1.5% were paid in Euros. Our US
operations generate revenues denominated in US dollars. If an arrangement
provides for us to receive payments in a foreign currency, revenue realized from
such an arrangement may be lower if the value of such foreign currency declines.
Similarly, if an arrangement provides for us to make payments in a foreign
currency, cost of services and operating expenses for such an arrangement may be
higher if the value of such foreign currency increases. For example, a 10%
change in the relative value of such foreign currency could cause a related 10%
change in our previously expected revenue, cost of services, and operating
expenses. If the international portion of our business continues to grow, more
revenue and expenses will be denominated in foreign currencies, which increases
our exposure to fluctuations in currency exchange rates. We have not hedged
against foreign currency exchange rate changes related to our international
operations.

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CENTURY CASINOS, INC. AND SUBSIDIARIES

- --------------------------------------------------------------------------------

Item 4. CONTROLS AND PROCEDURES

Under the supervision and with the participation of management, including
its principal executive officer and principal financial officer, the Company has
evaluated the effectiveness of the design and operation of its disclosure
controls and procedures (which are designed to ensure that information required
to be disclosed in the reports submitted under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
SEC's rules and forms) as of the end of the period covered by this report. Based
on their evaluation, the Company's principal executive officer and principal
financial officer have concluded that these controls and procedures are
effective.

There were no significant changes in the Company's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation. There were no significant deficiencies or material
weaknesses, and therefore there were no corrective actions taken.







* * * * * * * * * * * * * * * * * * * *


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PART II

OTHER INFORMATION

Item 1. - Legal Proceedings

The Company is not a party to, nor is it aware of, any pending or
threatened litigation which, in management's opinion, could have a
material adverse effect on the Company's financial position or results
of operations.

Items 2 to 5 - None

Item 6. - Exhibits and Reports on Form 8-K
(a) Exhibits - The following exhibits are filed herewith:

10.132 Contribution agreement dated as of October 12, 2004 among
Century Casinos Tollgate Inc., Tollgate Venture, LLC, KJE
Investments, LLC, Central City Venture, LLC, and CC Tollgate
LLC.

10.133 Limited Liability Company Agreement of CC Tollgate LLC
dated as of October 12, 2004.

10.134 Casino Services Agreement by and between CC Tollgate LLC
and Century Resorts International Limited dated October 12,
2004.

10.135 Memorandum of Understanding by and between Gayle Burnett,
Roger Burnett, B. Michael Dunn and Century Casinos, Inc.
dated October 13, 2004.

10.136 Third Amendment to Restated Credit Agreement dated October
27, 2004 among WMCK Venture Corp., Century Casinos Cripple
Creek, WMCK Acquisition Corp., Century Casinos, Inc. and
Wells Fargo Bank, N.A.

10.137 Amended and Restated Brokerage Agreement between Novomatic
AG and Century Resort Limited (rights transferred from
Century Casinos Inc.) dated October 1, 2004

10.138 Employment agreement by and between Century Casinos Inc.
and Mr. Richard S. Rabin, Chief Operating Officer, North
America dated July 19, 2004

31.1 Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, Chairman of the Board and Chief Executive
Officer.

31.2 Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, Vice-Chairman and President.

31.3 Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, Chief Accounting Officer.

32.1 Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, Chairman of the Board and Chief Executive
Officer.

32.2 Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, Vice-Chairman and President.

32.3 Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, Chief Accounting Officer

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(b) Reports on Form 8-K:

On July 30, 2004, the Registrant furnished a Current Report on Form
8-K, reporting Item 12, in which it announced it had posted to its
website a presentation of the review of financial results of
operations and financial condition as of and for the period ended June
30, 2004.



SIGNATURES:

Pursuant to the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.

CENTURY CASINOS, INC.

/s/ Larry Hannappel
- ---------------------------
Larry Hannappel
Chief Accounting Officer
Date: October 28, 2004



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