8-K

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                                 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): JUNE 25, 2001


                          COMMISSION FILE NUMBER 0-4281


                           ALLIANCE GAMING CORPORATION

             (Exact name of registrant as specified in its charter)


                        NEVADA                        88-0104066
          (State or other jurisdiction of         (I.R.S. Employer
           incorporation or organization)         Identification No.)

                 6601 S. BERMUDA RD.
                 LAS VEGAS, NEVADA                     89119
       (Address of principal executive offices)     (Zip Code)



      (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE): (702) 270-7600


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ITEM 5.  OTHER EVENTS

          On June 25, 2001, Alliance Gaming Corporation (the "Company") issued a
          press release (Exhibit 99 attached hereto) whereby it announced, among
          other things, that the Company has elected to terminate the sale of
          its Nevada route subsidiary, United Coin Machine Co.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

         (c)  Exhibits

              (99)  Press release dated June 25, 2001.





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SIGNATURES
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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 thereunto authorized.

      ALLIANCE GAMING CORPORATION
         (Registrant)





      By       /s/ Robert Miodunski
               ------------------------------------
               President and Chief Executive Officer
               (Principal Executive Officer)




      By       /s/ Robert L. Saxton
               -------------------------------------
               Sr. Vice President, Chief Financial
               Officer and Treasurer (Principal
               Financial and Accounting Officer)

Date: June 27, 2001

EX-99

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                                    Exhibit 99



FOR IMMEDIATE RELEASE

                                   Investor and Media Contact: Robert L. Saxton
                                                                Alliance Gaming
                                                                 (702) 270-7600

ALLIANCE GAMING UPDATES GUIDANCE FOR FISCAL 2001 AND PROVIDES FIRST GUIDANCE FOR
FISCAL 2002


LAS VEGAS, June 25, 2001 -- Alliance Gaming Corp. (Nasdaq: ALLY) today announced
updated earnings guidance for its fiscal year ending June 30, 2001 and its first
guidance for fiscal 2002. The Company also announced that it has completed a
total refinancing of its senior debt, and has elected to terminate the sale of
its Nevada Route.

The Company will hold a conference call on Tuesday, June 26th at 11 a.m. PDT (2
p.m. EDT) to discuss these and other topics. The Company intends to broadcast
the conference call live over the Internet. All interested parties are asked to
log in to the call at www.ally.com (Investor Relations) approximately 10 minutes
prior to the start of the call.

Fiscal Year 2001 Guidance
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For the fiscal year ended June 30, 2001, prior to certain charges related to the
refinancing and the termination of the sale of the Nevada Route (which are more
fully described below) the Company expects to earn approximately $2.20 per
share. The Company will however report earnings of approximately $1.27 per share
for the 2001 fiscal year net of the charges which total $9.8 million (or $0.93
per annual weighted average diluted share). Revenues and EBITDA for the same
period are expected to be approximately $525 million and $87 million,
respectively.


Fiscal Year 2002 Guidance
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The Company today has also announced its first guidance for fiscal year 2002.
Fully diluted earnings per share is expected to range between $3.05 and $3.15.
Total revenues are projected to be $590 million, while EBITDA is expected to
grow to $105 million.


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Senior Debt Refinancing
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The Company has completed a total refinancing of its $230 million senior bank
debt. The new credit facility consists of a $190 million, 5.5 year term loan,
and a $25 million revolver with a 5 year term, which is currently undrawn. The
Company has the ability to expand the revolver by an additional $15 million any
time before December 31, 2002. Banc of America Securities LLC was the sole lead
bank. Proceeds from this facility will be used to repay existing bank debt,
pay-off approximately $14 million of gaming equipment operating leases, and pay
certain transaction costs. The Company will record a non-cash charge in the
current quarter of approximately $3.2 million, ($0.29 per share for the quarter)
to write-off the un-amortized portion of financing costs relating to its
previous senior debt.

"This new credit facility and more importantly our relationship with Bank of
America will provide the company with both increased financial flexibility and
liquidity," stated Robert Saxton Senior Vice President and Chief Financial
Officer. "The terms and conditions are superior to our previous facility while
the interest rates are approximately 100 basis points lower."

As of June 30, 2001, the Company will have approximately $340 million of total
debt consisting of the new $190 million senior term debt and its existing $150
million 10% subordinated debentures due 2007. As of June 30, 2001, the Company's
ratio of debt to projected EBITDA (leverage ratio) is expected to be 3.9 times.
This is a significant improvement over the prior year's ratio of 6.6 times at
June 30, 2000.

Termination of the Nevada Route Sale
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Along with the new credit facility and the substantial increase in both
stability and profitability over the past year, the Company has elected to
terminate the sale of its Nevada Route. The sale agreement, which contained
certain termination options, was entered into in August of 2000 for a selling
price of $112 million in cash and $6 million in preferred stock. From the sale,
the Company expected to net approximately $95 million in cash, which under an
agreement with its previous bank, was to be applied to its senior term debt. The
reduction in this debt would have provided approximately $9.5 million in annual
interest savings. However the Nevada Route is expected to produce in excess of
$21.0 million of EBITDA on $202 million in revenues for fiscal 2001, therefore
its sale would not have been accretive to the overall earnings of the Company.
Additionally, the gain resulting from this sale would have significantly reduced
the Company's almost $90 million of Net Operating Loss carryforwards (NOL's)
effectively eliminating the estimated $30 million offset against future federal
income taxes. The Company will take a charge of approximately $6.6 million,
($0.58 per share for the quarter) for the transaction breakup fee and related
expenses.

Fourth Quarter 2001 Update
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For the quarter ending June 30, 2001, the Company expects to post, after the
effect of the one-time charges associated with the refinancing and termination
of the Nevada route sale aggregating $9.8 million or $0.87 per share, a loss of
approximately ($0.17) per share. Prior to these unusual charges, the Company
expects to earn approximately $0.70 per share for the quarter.


During the June 2001 quarter, the Company introduced its latest wide-area
progressive game, Millionaire 7s. This is the third game on the Thrillions
platform to be licensed in each of the major jurisdictions, and marks another
milestone in the penetration of the recurring revenue market. The Company's new
EVO platform is now approved at GLI for Native American installations. EVO is
also progressing through the other major jurisdictions and approvals are
expected by the end of this summer. In June, our first EVO video wide area
progressive on the Thrillions platform, Popeye (tm), was submitted to GLI with
an approval expected within 45 days. Additional game submissions will follow in
each jurisdiction as the EVO platform is approved.


"Fiscal 2001 has been a significant transition year for Alliance Gaming," stated
Robert Miodunski, President and Chief Executive Officer. " We have accomplished
a number of critical initiatives that will position the Company to accelerate
its growth in the near future. Fiscal 2001 also marks the first profitable year
for the Company since its acquisition of Bally Gaming in 1996. This new credit
facility, along with the substantial and stable cash production provided from
the Company's Route Operations and Casino Operations, will enable us to continue
to leverage the growth assets within Bally Gaming and Systems, and this is
reflected in the 40% growth in earnings per share we are currently projecting
for 2002."

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. Additional information
about the Company can be found on the Alliance Gaming web site at www.ally.com.


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This news release may contain "forward-looking" statements within the meaning of
the Securities Act of 1933, as amended, and is subject to the safe harbor
created thereby. Such information involves important risks and uncertainties
that could significantly affect the results in the future and, accordingly, such
results may differ from those expressed in any forward-looking statements.
Future operating results may be adversely affected as a result of a number of
risks that are detailed from time to time in the company's filings with the
Securities and Exchange Commission.

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