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Alliance SDS(R) Coupon, SDS Ticket Cashiering Products Approved

9 July 2002

LAS VEGAS – (Press Release) -- Alliance Gaming Corp. (Nasdaq: ALLY) announced today that its Bally Gaming and Systems business unit has received final regulatory approval from the Nevada Gaming Control Board for its SDS Coupon cashless product designed to give casino operators a powerful new marketing tool.

SDS Coupon allows casinos to reward players without giving away cash by issuing bar-coded coupons that are fed into a slot machine's bill validator to provide promotional credits that, in most jurisdictions, must be played by the player and can't simply be cashed out.

Harrah's Entertainment, Inc. (NYSE: HET) has already implemented SDS Coupon in Nevada and plans to have an additional 12,000 slot machines from a variety of manufacturers upgraded in the coming weeks. Harrah's intends to market the product under the Reel Rewards brand name.

"As part of the continuing evolution of our industry leading loyalty program -- Total Rewards -- Reel Rewards, which is based upon the SDS Coupon product, will provide greater convenience to our customers when redeeming promotional coupons," said John M. Boushy, Harrah's Entertainment's Senior Vice President, Operations, Products and Services and Chief Information Officer. "We have successfully implemented Reel Rewards at all of our Nevada properties and, in conjunction with Bally Gaming and Systems, we are actively pursuing regulatory approval in all jurisdictions where Harrah's operates or manages casinos."

Already an established product in the Atlantic City market, SDS Coupon gives casino operators another cashless option from the Bally Systems suite of products.

Bally Systems has also received regulatory approval from Gaming Laboratories International (GLI) for its SDS Ticket Cashiering(TM) (STC) product that allows for the replacement of competitive cashiering systems at SDS Ticketing(TM) locations in California, Arizona, New Mexico and Minnesota. SDS Ticket Cashiering is an integrated hardware and software solution that facilitates secure ticket activity at cashier stations and in soft count rooms.

Bally Gaming and Systems, a wholly owned business unit of Las Vegas-based Alliance Gaming Corporation, designs, manufactures, distributes and operates advanced gaming devices and systems worldwide.

Alliance Gaming is a diversified gaming company with headquarters in Las Vegas. The Company is engaged in the design, manufacture, distribution and operation 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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