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

[ X ]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2006

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

Commission file number 0-15415

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

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the last 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]

As of May 12, 2006, the Registrant had 5,149,610 shares of its Common Stock outstanding.

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

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The consolidated financial statements included herein have been prepared by Global Casinos, Inc. (the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such SEC rules and regulations. In the opinion of management of the Company the accompanying statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 2006, and its results of operations for the three month and nine month periods ended March 31, 2006 and 2005 and its cash flows for the nine month periods ended March 31, 2006 and 2005. The results for these interim periods are not necessarily indicative of the results for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto filed as a part of the Company's annual report on Form 10-KSB.

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The accompanying notes are an integral part of the financial statements.

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The accompanying notes are an integral part of the financial statements.

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The accompanying notes are an integral part of the financial statements.

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The accompanying notes are an integral part of the financial statements.

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GLOBAL CASINOS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2006
(UNAUDITED)

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

We operate in the domestic gaming industry. We were organized as a holding company for the purpose of acquiring and operating casinos, gaming properties and other related interests. At March 31, 2006, our operations consisted solely of the Bull Durham Saloon & Casino in Black Hawk, Colorado.

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

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

We recognized net income of $23,930 ($0.00 per share) for the three months ended March 31, 2006 compared to net income of $84,003 ($0.03 per share) for the same period in 2005.

Revenues

Casino revenues for the three months ended March 31, 2006 were $929,162 compared to $973,820 for the 2005 period, a decrease of $44,658 or 4.6%. The decrease is primarily attributed to the completion of certain construction work performed in the town of Black Hawk in June 2005 that had the effect of driving additional customer traffic into our casino during the comparable period in 2005. The anticipated decrease in customer traffic during the quarter as compared to the same period in 2005, was partially offset by increased promotional and marketing efforts in 2006, as discussed below.

Operating Expenses

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Casino operating expenses increased to $814,541 for the three months ended March 31, 2006 compared to $732,331 for the three months ended March 31, 2005, an increase of $82,210. Our costs increased by 11.2% while our revenues decreased by 4.6%. A significant portion of the cost increase came from the installation of the Oasis Casinos Management System. An increase in depreciation expense of $15,369 was primarily depreciation on the new system. Slot club and promotional expenses also increased by $25,197 resulting from increased direct mail marketing efforts and the related customer redemptions of slot club promotions. In addition, we realized additional charter bus expenses of $8,514 resulting from our efforts to direct traffic to our casino. Food and beverage expenses also increased by $8,705 as we continue to utilize it as an ongoing marketing tool to build our customer base. Salaries and wages increased modestly by $11,568, or 5.4%, from $213,680 for the quarter ended March 31, 2005, to $225,248 for the quarter ended March 31, 2006, which is attributed to regular merit increases.

General and administrative expenses decreased from $103,628 for the three months ended March 31, 2005 to $61,524 for the three months ended March 31, 2006, a decrease of $42,104 or 40.6%. The decrease is primarily related to decreases in legal and accounting fees of $29,773 due to additional expenses incurred in 2005 relating to the restructuring of certain debt and efforts to obtain additional capital financing. In addition, we realized a reduction in management fees of $9,000 for the three months ended March 31, 2006 as compared to the three months ended March 31, 2005, resulting from a change in executive management in December 2005. As a result of this change, we no longer employ the services of the prior executive officer's management company, for which we were billed at the rate of $3,000 per month. Also during the period ended March 31, 2006 the Company incurred non-cash stock compensation related to a marketing services agreement of $1,000.

There was no such expense in the comparable period in 2005.

Interest Expense

Interest expense was $27,602 for the three months ended March 31, 2006, compared to $53,858 for the similar period in 2005, a reduction of $26,256. During 2005, we issued 12% convertible debentures with detachable warrants and a beneficial conversion feature. This debt was automatically converted to common stock on December 31, 2005. As a result of the conversion, we realized a $15,000 reduction in interest expense for the quarter ended March 31, 2006 over the comparable period in 2005. The remainder of the decrease is attributable to normal reductions in principal balances on our mortgage notes. Monthly interest expense is expected to continue to decrease as the principal balances of our mortgage notes continue to decrease through normal debt service.

Other

The loss on asset disposals of $1,565 for the quarter ended March 31, 2006 resulted from the retirement and sale of certain casino equipment and fixtures.

For federal income tax purposes, Global has a net operating loss of carryover (NOL) approximating $6,500,000, which can be used to offset future taxable income, if any. Under the Tax Reform Act of 1986, the amounts of and the benefits from NOL's are subject to certain limitations including

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restrictions imposed when there is a loss of business continuity or when ownership changes in excess of 50% of outstanding shares, under certain circumstances. Thus, there is no guarantee that Global will be able to utilize its NOL before it expires and no potential benefit has been recorded in the financial statements.

Inflation did not have a material impact on our operations for the period.

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

We recognized a net loss of ($20,100) for the nine months ended March 31, 2006 compared to net income of $1,115,251 for the same period in 2005. The primary differences between the periods are the results of gains on debt restructurings during the nine months ended March 31, 2005, and the amortization of the debt discounting during the nine months ended March 31, 2006, both of which are discussed below.

Revenues

Casino revenues for the nine months ended March 31, 2006 were $2,950,691 compared to $2,940,375 for the 2005 period, a slight increase of $10,316 or 0.4%. The slight increase is primarily attributed to increased promotional and marketing efforts including a direct mail campaign designed to target our repeat customers, and efforts to direct charter bus customers to our casino. Certain construction work in the town of Black Hawk had the effect of driving additional customer traffic into our casino during the comparable period in 2005. This construction work was completed in June 2005. As such, we have increased our marketing and promotional efforts to offset an anticipated decrease in customer traffic since the completion of the construction.

Operating Expenses

Casino operating expenses increased to $2,419,401 for the nine months ended March 31, 2006 compared to $2,176,604 for the nine months ended March 31, 2005, an increase of $242,797. Our costs increased by 11.2% while our revenues increased by 0.4%. A significant portion of the cost increase came from the installation of the Oasis Casinos Management System. An increase in depreciation expense of $53,563 was primarily depreciation on the new system. Slot club and promotional expenses also increased by $68,141 resulting from increased direct mail marketing efforts and the related customer redemptions of slot club promotions. We also realized additional charter bus expenses of $19,040 resulting from our efforts to direct traffic to our casino. Food and beverage expenses also increased by $24,143 as we continue to utilize it as an ongoing marketing tool to build our customer base. Salaries and wages increased modestly by $27,560, or 4.3%, from $647,061 for the nine months ended March 31, 2005, to $674,621 for the nine months ended March 31, 2006, which is attributed to regular merit increases.

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General and administrative expenses decreased from $202,750 for the nine months ended March 31, 2005 to $188,333 for the nine months ended March 31, 2006, a decrease of $14,417 or 7.1%. The decrease is primarily related to decreases in legal and accounting fees of $28,657 due to additional expenses incurred in 2005 relating to the restructuring of certain debt and efforts to obtain additional capital financing. In addition, we realized a reduction in management fees of $9,000 for the nine months ended March 31, 2006 as compared to the nine months ended March 31, 2005, resulting from a change in executive management in December 2005. As a result of this change, we no longer employ the services of the prior executive officer's management company, for which we were billed at the rate of $3,000 per month. Also, during the period ended March 31, 2006 the Company incurred non-cash stock compensation related to a marketing services agreement of $6,000, there was no such expense in the comparable period in 2005.

Interest Expense

Interest expense was $363,782 for the nine months ended March 31, 2006 compared to $150,804 for the similar period in 2005. During 2005, we issued 12% convertible debentures with detachable warrants and a beneficial conversion feature. Amortization of the debt discounting resulting from the warrants and beneficial conversion feature was $250,000 for the nine months ended March 31, 2005, which increased our reported 9-month interest expense. This debt was automatically converted to common stock on December 31, 2005. As a result of the conversion, we realized a $15,000 reduction in interest expense during the three months ended March 31, 2006 over the comparable period in 2005. Monthly interest expense is expected to continue to decrease as the principal balances of our mortgage notes continue to decrease through normal debt service.

Other

The gain from settlement of debt in the amount of $2,290 for the nine months ended March 31, 2006 represents the negotiated settlement of a junior mortgage note payable that was paid off prior to its scheduled maturity in 2009.

The gain from debt restructuring in the amount of $705,034 for the nine months ended March 31, 2005 represents the accounting impact of several actions taken to improve our financial condition. We extinguished $659,177 of principal and accrued interest that was no longer an enforceable obligation because the statute of limitations had expired. We agreed to convert $213,390 of principal plus interest into 110,000 shares of common stock. The common stock had a market value of $104,500, resulting in a gain of $108,890. One of our mortgage holders accepted a cash payment of $28,468 as full payment of a debt with a face value of $47,447, resulting in a gain of $18,979. We incurred debt-restructuring costs of $82,012 to redeem an option held by the senior creditors of Casinos USA.

The loss on asset disposals of $1,565 for the nine months ended March 31, 2006 resulted from the retirement and sale of certain casino equipment and fixtures.

For federal income tax purposes, Global has a net operating loss of carryover (NOL) approximating $6,500,000, which can be used to offset future taxable income, if any. Under the Tax Reform Act of 1986, the amounts of and the benefits from NOL's are subject to certain limitations including restrictions imposed when there is a loss of business continuity or when ownership changes in excess of 50% of outstanding shares, under certain circumstances. Thus, there is no guarantee that Global will be able to utilize its NOL before it expires and no potential benefit has been recorded in the financial statements.

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Inflation did not have a material impact on our operations for the period.

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

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

At March 31, 2006, the Company had cash and cash equivalents of $1,061,163, substantially all of which was utilized in our casino operations. Pursuant to state gaming regulations, the casino is required to maintain cash balances sufficient to pay potential jackpot awards. The Company does not have access to any revolving credit facilities.

Our working capital improved by $456,734 to $547,556 at March 31, 2006, from $90,822 at June 30, 2005, primarily because of the conversion of the 12% debentures to common stock, the settlement of certain related party accounts payable, and proceeds received from the exercise of certain stock purchase warrants and options, all as discussed below and elsewhere in this report.

Cash provided by operating activities was $399,638 for the nine months ended March 31, 2006. For the same period in 2005, operating activities provided net cash of $518,843. The decline in cash provided by operating activities of $119,205 was primarily the result of the reductions of accounts payable and increases in casino operations expenses during the nine months ended March 31, 2006.

Cash used by investing activities was $17,108 for the nine months ended March 31, 2006. During the nine months ended March 31, 2006 we invested $17,908 in building improvements and equipment. We also received proceeds of $800 for the sale of certain retired fixtures and equipment. In addition, during the nine months ended March 31, 2006, we acquired $271,940 of selected casino equipment utilizing vendor financing. The vendor agreements require us to make periodic payments, all of which have payment terms of one year or less. For the nine months ended March 31, 2006, we have made payments under these agreements totaling approximately $105,000. During the nine months ended March 31, 2005, we used net cash of $54,026 in investing activities, also for capital expenditures.

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Cash flows used in financing activities increased $82,513 to $238,575 for the nine months ended March 31, 2006, compared to cash used of $156,062 for the nine months ended March 31, 2005. Debt payments of $353,575 for the nine months ended March 31, 2006, included scheduled payments for our Oasis Casino Management System purchased during fiscal year 2005, regular scheduled payments on mortgage notes, and payments on vendor financed equipment purchases as discussed above. Debt payments for the nine months ended March 31, 2005, included regular scheduled debt payments of $263,097, and $424,465 was paid to retire certain debt owed by Casinos USA to its senior creditor.

Certain stock purchase warrants and employee stock options were exercised in December 2005, resulting in cash proceeds of $115,000. In 2005, we received cash proceeds of $25,000 from the sale of common stock units as further discussed below, and $6,500 from the exercise of employee stock options.

Effective January 3, 2005 the Company finalized the private placement of convertible debentures that bear interest at 12% and mature on December 31, 2007. The debentures were sold at face value for gross proceeds of $500,000 and are secured by a pledge of 100% of our shares of Casinos USA. The debentures were convertible into common stock at a conversion rate of $0.50 per share. On December 31, 2005, all the debentures automatically converted to 1,000,000 shares of common stock. Holders of the debentures also received warrants to purchase 500,000 shares of common stock at an exercise price of $0.15 per share. In December 2005, all these warrants were exercised by the warrant holders as discussed above.

The warrants were valued using the Black Scholes option pricing model based on the market price of the common stock at the commitment date. The warrant valuation of $237,000 has been allocated to additional paid in capital. After allocating value to the warrants, we used the intrinsic value method to determine that all the remaining proceeds should be allocated to the embedded beneficial conversion feature. As such, $263,000 was credited to additional paid in capital. The total allocation of $500,000 was amortized over 12 months commencing January 3, 2005. During the nine months ended March 31, 2006, $250,000 was amortized and is included in the period's interest expense, also as discussed above.

In September 2004, the Company sold to three investors an aggregate of 250,000 units at a price of $0.10 per unit. Each unit consisted of one share of common stock and one warrant exercisable for a period of 15 months to purchase one additional share of common stock at an exercise price of $0.15. The securities were taken for investment purposes and were subject to restrictions on transfer. The securities were issued without registration under the Securities Act of 1933, as amended, in reliance upon the exemption from registration requirements thereof contained in Section 4(2) and Regulation D, Rule 506 thereunder.

Other

On February 28, 2006, the Company into an Organization Agreement with a certain individual to form a for-profit limited liability company under the name of Global Gaming Technologies, LLC ("GGT"). Under the terms of the Agreement, the individual will contribute to GGT all of his intellectual property rights related to two games of poker, which he individually developed. The Company has agreed to make an initial cash capital contribution to GGT of $100,000, for which it will receive a 25% equity interest in GGT. At the Company's election, it may make an additional

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$100,000 cash capital contribution to GGT for which it will receive an additional 25% equity interest. It is anticipated that the initial cash contribution will be used to further develop the two games and to investigate possible patent protection. At the present time, both games are still under development and neither has been approved for use in any gaming jurisdiction.

Subsequent to March 31, 2006, the Company made a $10,000 payment to GGT as part of the initial $100,000 cash capital payment discussed above.

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

Prior to January 1, 2006, Frank L. Jennings was the Company's Principal Executive and Financial Officer, and had established and maintained disclosure controls and procedures for the Company. The disclosure controls and procedures have been designed to ensure with reasonable assurance that material information relating to the Company is made known to him as soon as it is known by others within the Company and to give reasonable assurance that the information required to be disclosed by the Company in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Mr. Jennings tendered his resignation as the Company's Principal Executive and Financial Officer effective at the close of business December 31, 2005. Effective with Mr. Jennings' resignation, the Company engaged Todd Huss as its Chief Financial Officer and Clifford L. Neuman as Interim President, the Company's principal executive officer.

Since the management transition that occurred effective January 1, 2006, Clifford Neuman, the Company's Principal Executive Officer, and Todd Huss, our Principal Financial Officer, have continued and maintained disclosure controls and procedures for the Company. The disclosure controls and procedures have been designed to ensure with reasonable assurance that material information relating to the Company is made known to him as soon as it is known by others within the Company and to give reasonable assurance that the information required to be disclosed by the Company in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.

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