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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of The Securities Exchange Act of
      1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): September 14, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NEW
      MEDIA LOTTERY SERVICES, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="85%">

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            <td width="35%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">Delaware</font></u></div>
            </td>
            <td width="30%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">000-49884</font></u></div>
            </td>
            <td width="35%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font size="2">87-0705063</font></u></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="35%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(State
                or other jurisdiction</font></div>
            </td>
            <td width="30%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(Commission&#160;</font></div>
            </td>
            <td width="35%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">(IRS
                Employer</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="35%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">of
                incorporation)&#160;</font></div>
            </td>
            <td width="30%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">File
                Number)&#160;</font></div>
            </td>
            <td width="35%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">Identification
                No.)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="35%">&#160;</td>
            <td width="30%">&#160;</td>
            <td width="35%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td colspan="2" width="65%"><font size="2"><u>370 Neff Ave, Suite
              L,
              Harrisonburg, Virginia&#160;</u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></font></td>
            <td width="35%"><font size="2"><u>22801</u></font></td>
          </tr>
          <tr bgcolor="white">
            <td colspan="2" width="65%"><font size="2">(Address of principal executive
              offices)&#160;</font></td>
            <td width="35%"><font size="2">(Zip Code)</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code: 540-437-1688</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">_________________________________________</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      name or former address, if changed since last report.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font size="+0"><font style="FONT-FAMILY: Wingdings" size="3">o<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font>Written
      communications pursuant
      to Rule 425 under the Securities Act (17 CFR 230.425).</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings" size="3">o<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings" size="3">o<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b)).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings" size="3">o<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c)).</font></div>
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      <div>&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      4.02.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Non-Reliance
      on Previously Issued Financial Statements or a Related Audit Report or Completed
      Interim Review.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Audit Committee of the Board of Directors of New Media
      Lottery Services, Inc. (the &#8220;Company&#8221;), after discussion with the Company&#8217;s
      management, concluded that the Company&#8217;s audited financial statements for the
      fiscal year ended April 30, 2006 (the &#8220;Financial Statements&#8221;) included in the
      Company&#8217;s annual report on Form&#160;10-KSB for the fiscal year ended
      April&#160;30, 2006 (the &#8220;2006 Annual Report&#8221;), contain an error and should no
      longer be relied upon. The Company will restate the Financial Statements to
      correct the error by filing an amendment to the 2006 Annual Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Financial Statements improperly reduced consolidated net loss by $234,551.
      This
      $234,551 represents the Company&#8217;s interest in it&#8217;s 82.3% owned Irish
      subsidiary&#8217;s increased net loss of $284,995, which increase consists of costs
      incurred in connection with an offering of securities in Europe by that
      subsidiary. According to the provisions of the SEC&#8217;s Codification of Staff
      Accounting Bulletins Topic 5A, the $284,995 should be recorded as a reduction
      in
      the gross proceeds relating to the completed offering. The error resulted from
      a
      consolidation oversight where the offering costs were incorrectly accounted
      for
      in the subsidiary&#8217;s records. A wholly-owned subsidiary of the 82.3% owned
      subsidiary of the Company paid offering expenses on its parent&#8217;s behalf of
      $284,995. During consolidation, these items were incorrectly treated as both
      a
      reduction of general and administrative expenses and additional paid-in capital
      via intercompany accounts. Management of the Company identified the error in
      the
      manner in which it accounted for these costs in the course of preparing the
      Company&#8217;s quarterly report on Form 10-QSB for the three months ended July 31,
      2006. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Financial Statements referred to above will be restated to reflect a $284,995
      increase in general and administrative expenses and a $50,444 increase in
      minority interest in subsidiaries&#8217; losses on the consolidated statements of
      operations and corresponding increases of $234,551 in both minority interest
      and
      accumulated deficit on the consolidated balance sheet. The restatement of the
      Financial Statements will result in a change to the Company's consolidated
      balance sheet and the consolidated statements of operations, cash flows, and
      stockholders' deficit for the fiscal year ended April 30, 2006 but is not
      expected to have an adverse effect on the Company&#8217;s business outlook for future
      fiscal periods, nor impact the Company&#8217;s cash position or future cash flows from
      operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company will file an amendment to the 2006 Annual Report which includes the
      restated audited financial statements within three days of the filing of this
      Current Report on Form 8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Audit
      Committee reviewed the accounting treatment and disclosure referred to in this
      Item&#160;4.02 and discussed such treatment and disclosure with Bouwhuis,
      Morrill &amp; Company, the Company&#8217;s independent registered public accounting
      firm. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      and the Audit Committee of the Company have evaluated the impact of the
      restatement of the previously issued financial statements on the Company&#8217;s
      assessments of the effectiveness of its internal control over financial
      reporting as of the applicable period, including whether a material weakness
      existed in the Company&#8217;s internal control over financial reporting for such
      period. A material weakness is a control deficiency, or combination of control
      deficiencies, that results in more than a remote likelihood that a material
      misstatement of the annual or interim financial statements will not be prevented
      or detected. Based on the definition of &#8220;material weakness&#8221; in the Public
      Company Accounting Oversight Board&#8217;s Auditing Standard No. 2, An Audit of
      Internal Control Over Financial Reporting Performed in Conjunction With an
      Audit
      of Financial Statements,&#8221; restatement of financial statements in prior filings
      with the SEC is a strong indicator of the existence of a &#8220;material weakness&#8221; in
      the design or operation of internal control over financial reporting. Management
      and the Audit Committee of the Company have determined that the errors in the
      Financial Statements included in the 2006 Annual Report </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">were
      an
      isolated event and are </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">unlikely
      to occur again and that it is unlikely that a material misstatement of the
      Company&#8217;s annual or interim financial statements will not be prevented or
      detected in the future. Accordingly, management and the Audit Committee of
      the
      Company have determined that no material weakness existed in the Company&#8217;s
      internal control over financial reporting for the period for which the Company&#8217;s
      financial statements are being restated and will not recommend any changes
      to
      such controls and procedures.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>NEW
              MEDIA
              LOTTERY SERVICES, INC.</strong></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;September
              18, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;John
              T.
              Carson</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">John
              T. Carson, President</font></td>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>&#160;</td>
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{"company-data": {"conformed-name": "New Media Lottery Services Inc", "cik": "0001172635", "assigned-sic": "6510", "irs-number": "870705063", "state-of-incorporation": "DE", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-49884", "film-number": "061096281"}, "business-address": {"street1": "370 NEFF AVENUE", "street2": "SUITE L", "city": "HARRISONBURG", "state": "VA", "zip": "22801", "phone": "(540)437-1688"}, "mail-address": {"street1": "370 NEFF AVENUE", "street2": "SUITE L", "city": "HARRISONBURG", "state": "VA", "zip": "22801"}, "former-company": {"former-conformed-name": "RESIDENTIAL RESALES INC", "date-changed": "20020506"}}
Unassociated Document
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of The Securities Exchange Act of
      1934
Date
      of
      Report (Date of earliest event reported): September 14, 2006
NEW
      MEDIA LOTTERY SERVICES, INC.
(Exact
      name of registrant as specified in its charter)
Delaware
000-49884
87-0705063
(State
                or other jurisdiction
(Commission
(IRS
                Employer
of
                incorporation)
File
                Number)
Identification
                No.)
370 Neff Ave, Suite
              L,
              Harrisonburg, Virginia
22801
(Address of principal executive
              offices)
(Zip Code)
Registrant's
      telephone number, including area code: 540-437-1688
_________________________________________
(Former
      name or former address, if changed since last report.)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
o
Written
      communications pursuant
      to Rule 425 under the Securities Act (17 CFR 230.425).
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12).
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b)).
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c)).
Item
      4.02.
Non-Reliance
      on Previously Issued Financial Statements or a Related Audit Report or Completed
      Interim Review.
On
      September 14, 2006, the Audit Committee of the Board of Directors of New Media
      Lottery Services, Inc. (the "Company"), after discussion with the Company's
      management, concluded that the Company's audited financial statements for the
      fiscal year ended April 30, 2006 (the "Financial Statements") included in the
      Company's annual report on Form 10-KSB for the fiscal year ended
      April 30, 2006 (the "2006 Annual Report"), contain an error and should no
      longer be relied upon. The Company will restate the Financial Statements to
      correct the error by filing an amendment to the 2006 Annual Report.
The
      Financial Statements improperly reduced consolidated net loss by $234,551.
      This
      $234,551 represents the Company's interest in it's 82.3% owned Irish
      subsidiary's increased net loss of $284,995, which increase consists of costs
      incurred in connection with an offering of securities in Europe by that
      subsidiary. According to the provisions of the SEC's Codification of Staff
      Accounting Bulletins Topic 5A, the $284,995 should be recorded as a reduction
      in
      the gross proceeds relating to the completed offering. The error resulted from
      a
      consolidation oversight where the offering costs were incorrectly accounted
      for
      in the subsidiary's records. A wholly-owned subsidiary of the 82.3% owned
      subsidiary of the Company paid offering expenses on its parent's behalf of
      $284,995. During consolidation, these items were incorrectly treated as both
      a
      reduction of general and administrative expenses and additional paid-in capital
      via intercompany accounts. Management of the Company identified the error in
      the
      manner in which it accounted for these costs in the course of preparing the
      Company's quarterly report on Form 10-QSB for the three months ended July 31,
      2006.
The
      Financial Statements referred to above will be restated to reflect a $284,995
      increase in general and administrative expenses and a $50,444 increase in
      minority interest in subsidiaries' losses on the consolidated statements of
      operations and corresponding increases of $234,551 in both minority interest
      and
      accumulated deficit on the consolidated balance sheet. The restatement of the
      Financial Statements will result in a change to the Company's consolidated
      balance sheet and the consolidated statements of operations, cash flows, and
      stockholders' deficit for the fiscal year ended April 30, 2006 but is not
      expected to have an adverse effect on the Company's business outlook for future
      fiscal periods, nor impact the Company's cash position or future cash flows from
      operations.
The
      Company will file an amendment to the 2006 Annual Report which includes the
      restated audited financial statements within three days of the filing of this
      Current Report on Form 8-K.
The
      Audit
      Committee reviewed the accounting treatment and disclosure referred to in this
      Item 4.02 and discussed such treatment and disclosure with Bouwhuis,
      Morrill & Company, the Company's independent registered public accounting
      firm.
Management
      and the Audit Committee of the Company have evaluated the impact of the
      restatement of the previously issued financial statements on the Company's
      assessments of the effectiveness of its internal control over financial
      reporting as of the applicable period, including whether a material weakness
      existed in the Company's internal control over financial reporting for such
      period. A material weakness is a control deficiency, or combination of control
      deficiencies, that results in more than a remote likelihood that a material
      misstatement of the annual or interim financial statements will not be prevented
      or detected. Based on the definition of "material weakness" in the Public
      Company Accounting Oversight Board's Auditing Standard No. 2, An Audit of
      Internal Control Over Financial Reporting Performed in Conjunction With an
      Audit
      of Financial Statements," restatement of financial statements in prior filings
      with the SEC is a strong indicator of the existence of a "material weakness" in
      the design or operation of internal control over financial reporting. Management
      and the Audit Committee of the Company have determined that the errors in the
      Financial Statements included in the 2006 Annual Report
were
      an
      isolated event and are
unlikely
      to occur again and that it is unlikely that a material misstatement of the
      Company's annual or interim financial statements will not be prevented or
      detected in the future. Accordingly, management and the Audit Committee of
      the
      Company have determined that no material weakness existed in the Company's
      internal control over financial reporting for the period for which the Company's
      financial statements are being restated and will not recommend any changes
      to
      such controls and procedures.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
NEW
              MEDIA
              LOTTERY SERVICES, INC.
Date: September
              18, 2006
By:
/s/ John
              T.
              Carson
John
              T. Carson, President