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Alliance Gaming to Provide VLTs to New York State

21 October 2002

LAS VEGAS – (Press Release) -- Alliance Gaming Corp. (Nasdaq: ALLY) announced today that, subject to final contract negotiations, the New York Lottery has accepted the proposal by the Company's Bally Gaming and Systems business unit to provide video lottery terminals (VLTs) to the State of New York.

Bally Gaming and Systems will provide VLTs to a total of eight New York racetrack facilities. The first location is expected to begin VLT operations in mid-2003 and up to 14,000 gaming devices are initially planned for the market.

Bally Gaming and Systems submitted a detailed response in September 2002 to the New York Lottery's "Video Lottery Terminal, Games and Software Request for Proposals" and the Company received a congratulatory declaration from the New York Lottery on Oct. 17.

"We are thrilled to be selected to provide our proven game theme content in a VLT environment," said Robert Miodunski, President and Chief Executive Officer of Alliance Gaming. "The entire organization here worked very hard on the response to the State of New York and it's gratifying for everyone involved to be selected as a provider to the New York Lottery."

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, operation and distribution of advanced gaming devices and systems worldwide, and is the nation's largest gaming machine route operator and operates two casinos.

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