Harrah’s to acquire Biloxi site, sell LA resort
LOS ANGELES, April 17 (Reuters) - Harrah’s Entertainment Inc. on Monday said it planned to acquire a casino site in Biloxi, Mississippi, from Pinnacle Entertainment Inc., which in turn would buy its Lake Charles, Louisiana, resort.Las Vegas-based Harrah’s said in a statement that it was focusing Gulf Coast development efforts on Biloxi and New Orleans and thought it made sense to sell Harrah’s Lake Charles.
The company said the letter of intent with Pinnacle was nonbinding and subject to definitive documentation, as well as regulatory approvals. Financial details were not disclosed.
The Casino Magic site, which includes land leased from third parties, covers about 18 acres directly east of the Harrah’s-owned Grand Casino Biloxi.
Harrah’s said it planned this summer to reopen the resort, which was severely damaged by Hurricane Katrina last August, and to announce preliminary plans for a destination resort in Biloxi in mid-2006.
Harrah’s Lake Charles businesses, which Hurricane Rita severely damaged in September, include the 263-room Lake Front Hotel — currently open and operating — as well as two casino boats.
“Our L’Auberge du Lac facility in Lake Charles is close to the maximum gaming capacity permitted by the Louisiana gaming laws,” Pinnacle Chief Executive Daniel Lee said in a statement. “The purchase of Harrah’s Lake Charles allows us to build on our success in that market and enhance our Louisiana operations.”
He also said Pinnacle had decided, for now, to exit the Biloxi market due to the company’s relatively small site, the competitive environment, and demands elsewhere on its resources.