Exhibit 99

FOR IMMEDIATE RELEASE

Investor and Media Contact: Robert L. Saxton

Alliance Gaming

(702) 270-7600

ALLIANCE GAMING REPORTS SECOND QUARTER EPS UP 64% TO $0.28 FROM CONTINUING OPERATIONS; PROVIDES GUIDANCE FOR FISCAL YEAR 2004 AND 2005

BALLY GAMING AND SYSTEMS BUSINESS UNIT REPORTS 25% INCREASE IN OPERATING INCOME ON 11% INCREASE IN REVENUES

Las Vegas, Nev., January 15, 2004 - Alliance Gaming Corporation (NYSE: AGI) today announced earnings for its second fiscal quarter ending December 31, 2003. Second quarter income from continuing operations totaled $14.2 million, or $0.28 per diluted share, on revenues of $108.6 million. For the comparable quarter ended December 31, 2002, the Company reported income from continuing operations of $8.6 million or $0.17 per diluted share, on revenues of $98.2 million. The results for the Company’s continuing operations for the current and prior year periods are presented after classifying the results of the Rail City Casino as discontinued operations, which had the effect of reclassifying EPS of $0.02 in both quarters from income from continuing operations to income from discontinued operations.

Consolidated results for the December 31, 2003 quarter include:

• Revenues from continuing operations of $108.6 million, an increase of 11% from the $98.2 million in the prior year quarter.

• Operating income from continuing operations of $27.5 million, an increase of 30% from the $21.2 million in the prior year quarter.

• EBITDA from continuing operations of $34.0 million, an increase of 30% from the $26.1 million in the prior year quarter.

• Total net income, including discontinued operations, of $0.37 per diluted share, an increase of 56%, compared to $0.24 in the prior year quarter.

Earnings before interest, taxes, depreciation, amortization and refinancing charge (EBITDA) and EPS excluding the refinancing charge are not Generally Accepted Accounting Principles (GAAP) measurements. EBITDA may not be comparable to similarly titled measures reported by other companies. A reconciliation of EBITDA to income from continuing operations and a reconciliation of EPS excluding the refinancing charge to GAAP EPS are attached to this press release.

Cash and Capital Expenditures:

• As of December 31, 2003, cash and cash equivalents for our continuing operations totaled $72.3 million, which included approximately $2.7 million held for operational purposes in vaults, cages and change banks and $13.7 million held in jackpot reserve accounts. These amounts exclude cash and cash equivalents of the discontinued operations, which are included in assets held for sale.

• For the quarter ended December 31, 2003, consolidated capital expenditures for our continuing operations, including costs to produce proprietary games, totaled $13.2 million compared to $7.7 million for the prior year quarter. The current period capital expenditures were driven by the continued deployment of wide-area progressive and daily-fee games. We also incurred $1.7 million for capital expenditures for our discontinued operations.

Other financial highlights:

• Consolidated net interest expense for the current quarter totaled $3.8 million compared to $6.5 million in the prior year period. The Company currently has $70.0 million outstanding on its $125 million revolving credit facility, unchanged from September 2003 quarter end. During the December 2003 quarter we increased the Term Loan by $75 million, to a total of $350 million outstanding. The proceeds were used primarily to fund loans made to Sierra Design Group (SDG) in advance of the previously announced acquisition of SDG that is anticipated to close before March 31, 2004.

• The Company has advanced loans totaling $61 million to SDG to repay certain creditors.

Fiscal Year 2004 Guidance

• The Company is updating its fiscal year 2004 guidance for continuing operations from $1.10 per diluted share, to at least $1.04, reflecting the reclassification of $0.06 of EPS for Rail City Casino to discontinued operations. This guidance also reflects the inclusion of SDG’s results that we are now forecasting will not be dilutive to our fiscal year 2004 results, which we had previously guided could have been dilutive by as much as $(0.10). The comparative EPS for the prior fiscal year 2003 was $0.74, which has also been adjusted to reclassify the Rail City Casino as discontinued operations.

Fiscal Year 2005 Guidance

• For fiscal 2005, the Company expects EPS for continuing operations of at least $1.40, representing an increase of 35% compared to fiscal year 2004.

The Company will hold its conference call on Thursday, January 15, 2004 at 10 a.m. PST (1 p.m. EST). Participants may access the call by dialing (719) 457-2653. The Company will also broadcast the conference call over the Internet. Interested parties are asked to log on to the call at www.alliancegaming.com using the Investor Relations tab 10 minutes prior to the start of the call.

******

Supplemental Business Unit Detail

Bally Gaming and Systems Quarterly Revenues Increase 11%, Operating Income Increases 25%

The following chart summarizes the financial information for the Bally Gaming and Systems business unit (Dollars in millions):

	Three Months Ended December 31,						Six Months Ended December 31,
	2003			2002			2003			2002
Revenues
Game sales	$	49.6		$	50.4		$	92.3		$	84.2
System sales	30.7			23.0			60.7			38.3
Gaming operations	16.0			13.2			31.8			27.6
Total revenues	$	96.3		$	86.6		$	184.8		$	150.1

Gross Margin %	60		%	54		%	61		%	56		%

Operating Income	$	27.2		$	21.8		$	48.6		$	36.9

EBITDA	$	32.6		$	25.6		$	58.8		$	44.0

EBITDA Margin	34		%	30		%	32		%	29		%

New gaming devices sold	4,600			5,430			9,795			9,430
Game monitoring units sold	10,950			8,900			22,300			15,030
End of period installed base of WAP and daily-fee games	4,790			3,930			4,790			3,930
Average installed base of WAP and daily-fee games	4,800			3,910			4,740			3,800

Bally Gaming and Systems business unit reported an 11% increase in revenues over the prior year’s quarter. Revenues from sales of gaming devices decreased 2% over the prior year’s quarter primarily as a result of a 15% decrease in new game sales. The average new-unit selling price increased 10% over prior year’s quarter to $9,050 (excluding 240 OEM games). The increase in the average selling price includes the positive impact from the sale of 165 Monte Carlo premium-priced units as well as other premium-priced branded products.

During fiscal year 2004, Bally Gaming has experienced an almost four fold increase in the volume of product submissions to the various domestic regulatory bodies, each of which charge fees for testing and approval of each product. The year to date fees incurred for such regulatory approvals has exceeded $5.1 million. Of these amounts incurred, during the quarter ended December 31, 2003, the Company capitalized a total of $2.4 million of such costs, as such costs were directly attributable to products which have been approved.

Bally Systems revenues increased 33% over the prior year quarter driven by a 23% increase in game monitoring units shipped, a continued increase in the average selling price per unit, increased sales of software licenses for eTICKET™, the industry’s leading

single-wire TITO solution that is currently operating in 59 casinos, as well as sales of its bonusing and promotions software. Bally Systems recurring hardware and software revenues increased to $5.1 million, resulting from the larger base of installed systems.

Gaming Operations revenues increased 21% compared to the prior year’s quarter driven by a 23% increase in the average installed base of wide-area progressive (WAP) and daily-fee games deployed, which now total 1,840 and 2,950, respectively. During the quarter we deployed an additional 970 WAP and daily-fee games, and had returns totaling 970 games, resulting in no net increase in the installed base of games on a sequential basis as of December 31, 2003 compared to September 30, 2003. The current quarter placements included the continued roll out of “Cash for Life” WAP games and continued placement of daily fee games such as Playboy and the Saturday Night Live series, as well as an additional 130 games at Delaware race tracks.

Casino Operation

Rainbow Casino Quarterly Revenues Increase 6%, Operating Income Increases 45%

The following chart summarizes the financial information for the Rainbow Casino in Vicksburg, Mississippi (Dollars in millions):

	Three Months Ended December 31,						Six Months Ended December 31,
	2003			2002			2003			2002
Rainbow Casino
Revenues	$	12.3		$	11.6		$	25.1		$	24.3
Operating Income	3.8			2.6			7.8			6.5
EBITDA	4.5			3.2			9.2			7.6
EBITDA Margin	37		%	27		%	37		%	31		%
Average Number of Gaming Devices	910			905			930			930
Avg. Number of Table Games	12			16			12			16

Rainbow Casino reported a 6% increase in revenue compared to the prior year quarter, and represents the fourth consecutive quarter of revenue growth. Rainbow’s EBITDA increased 42% to $4.5 million compared to the prior year quarter, which period was impacted by the internal remodeling project.

Discontinued Casino Operation

The following information is provided for the Rail City Casino in Sparks Nevada, which is classified as discontinued operations (Dollars in millions):

	Three Months Ended December 31,						Six Months Ended December 31,
	2003			2002			2003			2002
Rail City Casino
Revenues	$	5.9		$	5.2		$	11.2		$	10.3
Operating Income	1.6			1.2			2.7			2.3
EBITDA	1.8			1.5			3.3			2.8
EBITDA Margin	31		%	28		%	29		%	27		%
Average Number of Gaming Devices	580			545			575			545
Avg. Number of Table Games	7			8			7			8

On December 8, 2003 the Company announced that it had entered into an agreement for the sale of its Rail City Casino for consideration consisting of $35 million in cash and a $3 million note. The sale is expected to close in early to mid calendar 2004. Accordingly the results of operations for Rail City have been reclassified as discontinued operations in both the current and prior year periods.

Discontinued Route Operations

The following information is provided for the Company’s Nevada Route and Louisiana Route operations, which are classified as discontinued operations (Dollars in millions):

	Three Months Ended December 31,				Six Months Ended December 31,
	2003		2002		2003		2002
Revenues
Nevada	$	54.1	$	49.7	$	104.4	$	100.9
Louisiana	4.2		3.6		7.9		7.3
Total revenues	$	58.3	$	53.3	$	112.3	$	108.2

Operating Income (a)
Nevada	$	5.7	$	2.0	$	10.8	$	4.1
Louisiana	0.7		0.5		1.2		1.0
Total operating income	$	6.4	$	2.5	$	12.0	$	5.1

EBITDA
Nevada	$	5.7	$	5.3	$	10.8	$	10.8
Louisiana	0.7		0.5		1.2		1.0
Total EBITDA	$	6.4	$	5.8	$	12.0	$	11.8

Average Number of Gaming Devices
Nevada	8,425		8,130		8,130		8,235
Louisiana	745		710		730		710
Total Gaming Devices	9,170		8,840		8,860		8,945

For the Nevada route operations, revenue increased 9% and EBITDA increased 7% compared to prior year quarter. The average number of games deployed increased 4% over the prior year quarter and the average net win per day per gaming machine increased to $68.80 from $65.85.

The increase in revenues at VSI is due to a increase in net win per day per gaming machine to $60.40 from $56.65 and the number of units deployed remained constant compared to the prior year quarter.

(a) The results of the Nevada Route and Louisiana Route operations for the quarter ended December 31, 2002 reflect depreciation and amortization expense. In accordance with generally accepted accounting principles, depreciation and amortization for these discontinued operations ceased as of July 1, 2003 as a result of their designation as assets held for sale. Had depreciation and amortization expense been recorded for the current period, operating income for the discontinued operations would have decreased by $3.5 million for the current quarter.

* * * * *

The disclosures herein include statements that are “forward looking” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, and are subject to the safe harbor created thereby. Such forward looking information involves important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward looking statements made by or on behalf of the Company. Future operating results may be adversely affected as a result of a number of factors enumerated in the Company’s public reports and prospectuses such as the impact of competition, uncertainties concerning such matters as the Company’s ability to service debt, product development, customer financing, sales to non-traditional gaming markets, foreign operations, dependence on key personnel, strict regulation by gaming authorities, gaming taxes and value added taxes, and other risk factors listed from time to time in the Company’s SEC reports, including but not limited to the most recent reports on Form 10-K and 10-Q.

Alliance Gaming Corporation is a diversified gaming company headquartered in Las Vegas, Nevada. The Company is engaged in the design, manufacture, operation and distribution of advanced gaming devices and systems worldwide and is currently 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.alliancegaming.com.

The accompanying unaudited condensed consolidated financial statements include comparative information for the quarter and six-month periods ended December 31, 2002, which have been reclassified to conform to the current presentation which includes the results of Bally Wulff, Rail City, the Nevada Route and Louisiana Route operations as discontinued operations.

(Tables Follow)

ALLIANCE GAMING CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In 000’s, except per share amounts)

	Three Months Ended December 31,
	2003			2002 (a)
Revenues:
Gaming equipment and systems	$	96,319		$	86,627
Casino operations	12,312			11,600
	108,631			98,227
Costs and expenses:
Cost of gaming equipment and systems	38,780			39,663
Cost of casino operations	4,884			5,223
Selling, general and administrative	24,248			22,095
Research and development costs	6,740			5,158
Depreciation and amortization	6,445			4,847
	81,097			76,986
Operating income	27,534			21,241
Other income (expense):
Interest Income	83			79
Interest expense	(3,869		)	(6,554		)
Minority interest	(541		)	(309		)
Other, net	(545		)	265

Income from continuing operations before income taxes	22,662			14,722
Income tax expense	8,444			6,146
Income from continuing operations	14,218			8,576
Discontinued operations:
Income from discontinued operations of wall machines and amusement games unit, net	—			895
Income from discontinued operations of Nevada Route, net	3,077			1,325
Income from discontinued operations of Louisiana Route, net	420			284
Income from discontinued operations of Rail City Casino, net	1,029			773
Income from discontinued operations	4,526			3,277

Net income	$	18,744		$	11,853

Diluted earnings per share
Continuing operations	$	0.28		$	0.17
Discontinued operations	0.09			0.07

Total	$	0.37		$	0.24

Weighted average common and common share equivalents outstanding	50,930			50,316

Notes:

(a) The results for the period ended December 31, 2002 have been reclassified to report the results of the Rail City Casino as discontinued operations.

	Six Months Ended December 31,
	2003 (a)			2002 (a)
Revenues:
Gaming equipment and systems	$	184,787		$	150,166
Casino operations	25,067			24,267
	209,854			174,433
Costs and expenses:
Cost of gaming equipment and systems	72,017			65,921
Cost of casino operations	9,887			10,520
Selling, general and administrative	53,313			42,195
Research and development costs	12,703			9,133
Depreciation and amortization	12,467			9,153
	160,387			136,922
Operating income	49,467			37,511
Other income (expense):
Interest income	126			127
Interest expense	(9,598		)	(13,195		)
Minority interest	(1,027		)	(754		)
Refinancing charge	(12,293		)	—
Other, net	(899		)	366

Income from continuing operations before income taxes	25,776			24,055
Income tax expense	9,710			9,956
Income from continuing operations	16,066			14,099
Discontinued operations:
Loss from discontinued operations of wall machines and amusement games unit, net	—			(726		)
Income from discontinued operations of Nevada Route, net	6,209			2,690
Income from discontinued operations of Louisiana Route, net	730			559
Income from discontinued operations of Rail City Casino, net	1,767			1,489

Income from discontinued operations	8,706			4,012
Net income	$	24,772		$	18,111

Diluted earnings per share
Continuing operations	$	0.32		$	0.29
Discontinued operations	0.17			0.08
Total	$	0.49		$	0.37

Weighted average common and common share equivalents outstanding	50,814			49,560

(a) The results have been reclassified to report the results of the Rail City Casino as discontinued operations.

ALLIANCE GAMING CORPORATION

SUMMARY UNAUDITED BALANCE SHEETS

(In 000’s)

	Dec. 31, 2003		June 30, 2003 (a)
ASSETS
Current assets:
Cash and cash equivalents	$	72,254	$	38,884
Accounts and short-term notes receivable, net	106,731		98,368
Inventories, net	39,274		32,102
Deferred tax assets, net	38,061		44,821
Other current assets	9,383		8,010
Total current assets	265,703		222,185
Short-term investments (restricted)	2,611		864
Long-term notes receivable, net	7,173		14,865
Notes receivable from SDG	61,025		—
Leased equipment, net	30,221		25,792
Property, plant and equipment, net	59,876		56,894
Goodwill, net	66,225		63,040
Intangible assets, net	29,083		26,631
Assets of discontinued operations held for sale	106,886		114,314
Deferred tax assets, net	—		—
Other assets, net	6,235		580
Total assets	$	635,038	$	525,165

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	20,633	$	22,726
Accrued liabilities	23,868		30,183
Jackpot liabilities	12,785		10,588
Current maturities of long-term debt	3,069		3,537
Liabilities of discontinued operations held for sale	16,647		16,186
Total current liabilities	77,002		83,220
Long-term debt, net	422,217		341,678
Deferred tax liabilities	6,006		3,920
Other liabilities	5,048		3,387
Total liabilities	510,273		432,205
Minority interest	1,216		1,330
Total stockholders’ equity	123,549		91,630
Total liabilities and stockholders’ equity	$	635,038	$	525,165

(a) Reclassified to reflect the Rail City Casino assets and liabilities as held for sale.

ALLIANCE GAMING CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In 000’s)

	Six Months Ended December 31
	2003			2002
Cash flows from operating activities of continuing operations:
Net income	$	24,772		$	18,111
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
Income from discontinued operations	(8,706		)	(4,012		)
Depreciation and amortization	12,467			9,153
Refinancing Charge	12,293			—
Deferred income taxes	9,401			7,507
Provision for losses on receivables	526			628
Other	(1,099		)	531
Change in operating assets and liabilities:
Accounts and notes receivable	(2,019		)	(32,540		)
Inventories	(2,493		)	(847		)
Other current assets	(1,023		)	(800		)
Accounts payable	(2,072		)	1,806
Accrued liabilities	(2,924		)	4,647
Net cash provided by operating activities of continuing operations	39,123			4,184

Cash flows from investing activities of continuing operations:
Increase in SDG notes receivable	(61,025		)	—
Additions to property, plant and equipment	(3,815		)	(4,901		)
Additions to leased gaming equipment	(15,957		)	(10,010		)
Additions to other long-term assets	(10,414		)	(1,879		)
Acquisitions, net of cash acquired	(3,879		)	(3,038		)
Proceeds from sale of net assets of discontinued operations	16,500			—
Net cash used in investing activities of continuing operations	(78,590		)	(19,828		)

Cash flows from financing activities of continuing operations:
Debt issuance costs	(6,954		)	—
Premium and consent fees paid on redemption of subordinated notes	(5,399		)	—
Proceeds from the issuance of long-term debt	350,000			—
Net change in revolving credit facility	70,000			—
Payoff of debt from refinancing	(337,625		)	—
Reduction of long-term debt	(1,349		)	(1,991		)
Proceeds from exercise of stock options	3,939			1,792
Net cash provided by (used in) financing activities of continuing operations	72,612			(199		)

Effect of exchange rates changes on cash	130			93

Cash and cash equivalents provided by discontinued operations	95			8,444

Cash and cash equivalents:
Increase (decrease) for the period	33,370			(7,306		)
Balance, beginning of period	38,884			31,800
Balance, end of period	$	72,254		$	24,494

ALLIANCE GAMING CORPORATION

Other Supplemental Information

Reconciliation to GAAP EPS

The following table reconciles EPS excluding the refinancing charge to GAAP EPS from continuing operations:

	Three Months Ended December 31				Six Months Ended December 31
	2003		2002		2003		2002

Diluted earnings per share from continuing operations, as reported	$	0.28	$	0.17	$	0.32	$	0.29
Refinance charge, net of tax	—		—		0.15		—
Diluted earnings per share from continuing operations, before refinance charge	$	0.28	$	0.17	$	0.47	$	0.29

Reconciliation of EBITDA to income from continuing operations

The following table reconciles earnings before interest, taxes, depreciation and amortization before refinancing charge (EBITDA) for the Company’s income from continuing operations (in 000s):

	Three Months Ended December 31				Six Months Ended December 31
	2003		2002		2003		2002
Net income from continuing operations	$	14,218	$	8,576	$	16,066	$	14,099
Income taxes	8,444		6,146		9,710		9,956
Other expense, net	1,086		44		1,926		388
Interest expense, net	3,786		6,475		9,472		13,068
Refinancing charge	—		—		12,293		—
Operating income	27,534		21,241		49,467		37,511
Depreciation and amortization	6,445		4,847		12,467		9,153
EBITDA from continuing operations	$	33,979	$	26,088	$	61,934	$	46,664

The following tables reconcile operating income by business segment to EBITDA:

For the quarter ended December 31, 2003 (from continuing operations) (in 000s):

	Operating Income (Loss)			Depreciation and Amortization		EBITDA

Bally Gaming and Systems	$	27,217		$	5,389	$	32,606
Rainbow Casino	3,814			683		4,497
Corporate expenses	(3,497		)	373		(3,124		)
	$	27,534		$	6,445	$	33,979

For the quarter ended December 31, 2002 (from continuing operations) (in 000s):

	Operating Income (Loss)			Depreciation and Amortization		EBITDA

Bally Gaming and Systems	$	21,775		$	3,777	$	25,552
Rainbow Casino	2,631			528		3,159
Corporate expenses	(3,165		)	542		(2,623		)
	$	21,241		$	4,847	$	26,088

For the six months ended December 31, 2003 (from continuing operations) (in 000s):

	Operating Income (Loss)			Depreciation and Amortization		EBITDA

Bally Gaming and Systems	$	48,575		$	10,217	$	58,792
Rainbow Casino	7,828			1,371		9,199
Corporate expenses	(6,936		)	879		(6,057		)
	$	49,467		$	12,467	$	61,934

For the six months ended December 31, 2002 (from continuing operations) (in 000s):

	Operating Income (Loss)			Depreciation and Amortization		EBITDA

Bally Gaming and Systems	$	36,910		$	7,041	$	43,951
Rainbow Casino	6,545			1,026		7,571
Corporate expenses	(5,944		)	1,086		(4,858		)
	$	37,511		$	9,153	$	46,664

Reconciliation of EBITDA to income from discontinued operations

	Three Months Ended December 31					Six Months Ended December 31
	2003		2002			2003		2002
Net income from discontinued operations	$	4,526	$	3,277		$	8,706	$	4,012
Income taxes	2,437		1,299			4,724		2,581
Other expense, net	956		(3		)	993		169
Interest expense, net	28		(361		)	323		(599		)
Operating income	7,947		4,212			14,746		6,163
Depreciation and amortization	239		4,074			565		7,767
EBITDA from discontinued Operations	$	8,186	$	8,286		$	15,311	$	13,930

For the quarter ended December 31, 2003 (from discontinued operations) (in 000s):

	Operating Income		Depreciation and Amortization		EBITDA

Route Operations	$	6,364	$	—	$	6,364
Rail City Casino	1,583		239		1,822
	$	7,947	$	239	$	8,186

For the quarter ended December 31, 2002 (from discontinued operations) (in 000s):

	Operating Income		Depreciation and Amortization		EBITDA

Route Operations	$	2,468	$	3,315	$	5,783
Wall Machines and Amusement Games	554		495		1,049
Rail City Casino	1,190		264		1,454
	$	4,212	$	4,074	$	8,286

For the six months ended December 31, 2003 (from discontinued operations) (in 000s):

	Operating Income		Depreciation and Amortization		EBITDA

Route Operations	$	12,031	$	—	$	12,031
Rail City Casino	2,715		565		3,280
	$	14,746	$	565	$	15,311

For the six months ended December 31, 2002 (from discontinued operations) (in 000s):

	Operating Income (Loss)			Depreciation and Amortization		EBITDA

Route Operations	$	5,133		$	6,625	$	11,758
Wall Machines and Amusement Games	(1,261		)	634		(627		)
Rail City Casino	2,291			508		2,799
	$	6,163		$	7,767	$	13,930

We believe that the analysis of EBITDA is a useful adjunct to operating income, net income, cash flows and other GAAP-based measures. However, EBITDA should not be construed as an alternative to net income (loss) or cash flows from operating, investing and financing activities determined in accordance with GAAP or as a measure of liquidity. EBITDA is a common measure of performance in the gaming industry but may not be comparable to similarly titled measures reported by other companies. We disclose EBITDA primarily because it is a performance measure used by management in evaluating the performance of our business units and is one of several performance measures used in our management incentive plan. Additionally, EBITDA is utilized as a performance measure in covenants for our bank credit agreement.

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

6601 S. Bermuda Rd. Las Vegas, Nevada		89119
(Address of principal executive offices)		(Zip Code)

	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: January 15, 2004

WASHINGTON, D.C. 20549

NEVADA

88-0104066

89119

Revenues

Game sales

$

49.6

$

50.4

$

92.3

$

84.2

System sales

30.7

23.0

60.7

38.3

Gaming operations

16.0

13.2

31.8

27.6

Total revenues

$

96.3

$

86.6

$

184.8

$

150.1

Gross Margin %

60

%

54

%

61

%

56

%

Operating Income

$

27.2

$

21.8

$

48.6

$

36.9

EBITDA

$

32.6

$

25.6

$

58.8

$

44.0

EBITDA Margin

34

%

30

%

32

%

29

%

New gaming devices sold

4,600

5,430

9,795

9,430