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: June 25, 2002




                  ALPHA HOSPITALITY CORPORATION

        (Exact Name of Registrant as Specified in Charter)





          Delaware                   1-12522                13-3714474
 (State or other jurisdiction   (Commission File No.)    (IRS Employer
     of incorporation)                                    Identification No.)




          707 Skokie Boulevard, Suite 600, Northbrook, Illinois       60062
                        (Address of Principal Executive Offices)    (Zip Code)



     Registrant's telephone number, including area code: (847) 418-3804






ITEM 5.   OTHER EVENTS

Tribal Leadership Dispute

     Alpha Hospitality Corporation (the "Company")  has interests in a
partnership, Catskill Development, LLC ("Catskill") that has certain
agreements with regard to the development of a casino for the St. Regis
Mohawk Tribe (the "Tribe").  These agreements were entered into with a
leadership group that has been seeking re-recognition by the Bureau of
Indian Affairs (the "Bureau") as the "Constitutional Government"
of the Tribe. These agreements are essentially extensions of the agreements
entered into at the time that this group was recognized by the Bureau and
are currently in force.  Catskill also had agreements executed by the
leadership group of the Tribe that is currently recognized by the Bureau,
know as the "Three Chiefs".  It is the breach of the agreements executed
by the Three Chiefs, which have expired, which are the subject of
litigation with Park Place Entertainment Corporation.

     Representatives of the Constitutional Government have been seeking to
intervene, for purposes of appeal, in a lawsuit brought by the Three Chiefs
in the District Court for the District of Columbia (the "Court").  In that
case the Court found that the Bureau had abused its discretion in the
proceedings under which the Constitutional Government had been granted
recognition.  In the intervention proceedings, the Constitutional Government
had been denied the right to intervene in part because the Court found that the
earlier case did not involve a "final decision" by the Bureau.

     On June 5, 2002, Neal McCaleb, Assistant Secretary for Indian Affairs of
the Department of the Interior (the "Department"), issued a letter to the
attorney for the Constitutional Government.  The letter responded to a
request by the Constitutional Government for a reconsideration of the
recognition of the Three Chiefs by the Department and denied the request.
The  letter reviewed actions taken by the Department and the Constitutional
Government, including the recognition of the Three Chiefs, subsequent to
the original decision of the Court and expressed the view that the
Constitutional Government had either exhausted or failed to timely pursue
it administrative remedies with regard to the recognition of the Three
Chiefs.  The letter ends with a statement that "this decision constitutes
the final agency decision for the Department".

     The Company has been informed that the Constitutional Government and
its attorneys are reviewing this decision and evaluating various
alternatives for judicial review of the decision.  However, the Company
cannot predict whether the Constitutional Government will pursue an appeal
of this decision or other proceedings in connection with its re-recognition
effort or whether such an appeal or other proceedings will ultimately
be successful.

ITEM 6.  Resignation of Registrant's Directors

Resignation of Brett Tollman

     Brett Tollman, the son of former Chairman and Chief Executive Officer
Stanley Tollman, has submitted his resignation as a member of the Board of
Directors and Vice President of the Company.  Mr. Tollman resigned following
the filing of a Federal complaint alleging tax violations against him.  Mr.
Tollman indicated that he had submitted his resignation because he felt
that, even though the allegations against him are unrelated to the business
of the Company, it was in the best interest of the Company and expressed his
view that the allegations are entirely unwarranted.




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 thereunto duly authorized.


Dated: June 25, 2002                    ALPHA HOSPITALITY CORPORATION
                                                 (Registrant)

                                         By: /s/ Scott A. Kaniewski
                                             Scott A. Kaniewski
                                             Chief Financial Officer