

Exhibit 99.1

FOR IMMEDIATE RELEASE:     Wednesday, August 19, 1998

Contact: Susan J. Carstensen                         Wayne Brown
                  Chief Financial Officer            Senior Vice President
                  Powerhouse Technologies, Inc.      Carl Thompson Associates
                  877/770-7974                       800/959-9677

                     POWERHOUSE TECHNOLOGIES, INC. RECEIVES
                        $100 MILLION FINANCING COMMITMENT
                      AND ANNOUNCES STOCK BUY-BACK PROGRAM

[ATLANTA] --  Powerhouse  Technologies,  Inc.  (Nasdaq  National  Market:  PWRH)
announced today that Lehman Brothers, Inc. has agreed to structure,  arrange and
syndicate a $100 million credit  facility for the Company,  and Lehman  Brothers
Commercial  Paper,  Inc. has  committed to  providing  the entire  amount of the
credit facility.
     The credit facility  consists of a five-year,  $50 million revolving credit
facility  and two $25  million  term  loans  maturing  in  five  and six  years,
respectively.  The new  facility  will be  used  in part to  refinance  existing
indebtedness.  Closing of the  transaction  is  contingent  upon  completion  of
definitive agreements.
     "The scope and  flexibility  of this  facility  allows us to  continue  our
growth strategies,  including our casino addition at our Sunland Park racetrack,
implementation of the Pennsylvania  Lottery contract and additional new business
initiatives," said Richard M. Haddrill, President and Chief Executive Officer of
Powerhouse  Technologies.  "Further,  the facility  enables us to repurchase our
common stock."
     The Company's  Board of Directors has authorized an open market  securities
repurchase plan, effective  immediately,  for up to $10 million of the Company's
common stock.
     "We believe that on-going  repurchases  of our stock at current  attractive
valuations  represent an  appropriate  use of cash and are  consistent  with our
commitment  to  enhancing  shareowner  value," said Susan J.  Carstensen,  Chief
Financial Officer of Powerhouse Technologies.

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     Powerhouse  Technologies,  Inc.,  through its  operating  units - AWI, VLC,
United Tote and Sunland  Park  racetrack  -- is one of the leading  suppliers of
system software,  equipment,  and related services for on-line lotteries,  video
lotteries and pari-mutuel  systems  throughout the world, and a manufacturer and
distributor of gaming devices for casinos.  Presently,  the Company's  equipment
and systems are in  operation in the United  States,  Canada,  Australia,  Asia,
Europe, South America and the Caribbean.

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The private  securities  Litigation  Reform Act of 1995 provides a "safe harbor"
for  forward-looking   statements  except  for  historical   information.   Some
statements in this release are  forward-looking and are subject to certain risks
and uncertainties.  These include,  but are not limited to, economic conditions,
changes  or  regulation,   the  further  approval  of  regulatory   authorities,
production and/or quality control problems, demand for the products and services
of the Company,  and the effects of competition.  These risks and  uncertainties
could  significantly  affect  the  anticipated  results in the future and actual
results may differ  materially  from any  forward-looking  statements.  For more
information on the potential  factors which could affect the Company's  business
and financial results, see the Company's filing with the Securities and Exchange
Commission.  The  Company  undertakes  no  obligation  to update or revise  such
statements to reflect new circumstances.

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