Acquisitions & Hotel Openings

Harrah's Completes Casino Magic Biloxi Buy

LAS VEGAS, NV, November 10, 2006. -Harrah's Entertainment, Inc. (NYSE:HET) said today its previously announced transactions with Pinnacle Entertainment, Inc. (NYSE:PNK) -- the acquisition of the remaining assets of Casino Magic Biloxi by affiliates of Harrah's, and the sale of two Harrah's subsidiaries that own businesses in Lake Charles, La. -- have closed. In addition to the Casino Magic assets, Harrah's received a payment of approximately $25 million from Pinnacle in the transactions.

"It has been a privilege to be a part of the Lake Charles community for the last six years, and we wish the community every success as they work to continue the growth of their gaming and tourism industry," said Anthony Sanfilippo, president of Harrah's Central Division. "We look forward to the future in Biloxi, where this acquisition gives us additional flexibility in pursuing future development along the Mississippi Gulf Coast."

Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment through operating subsidiaries. Since its beginning in Reno, Nevada nearly 70 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

Coming Up In The December Online Hotel Business Review

Feature Focus
Hotel Law: Legal Issues Looming Large in 2015
In an industry where people are on-property 24/7/365, the possibilities are endless for legal issues to arise stemming from hotel guest concerns. And given the sheer enormity of the international hotel industry, issues pertaining to business, franchise, investment and real estate law are equally immense. Finally, given the huge numbers of diverse people who are employed in the hospitality industry, whether in hotel operations or food and beverage, legal issues pertaining to labor, union, immigration and employment law are also significant and substantial. The expertise of all kinds of specialists and practitioners is required to administer the legal issues within the hotel industry, and though the subject areas are vast and varied, there are numerous issues which will be in the forefront in 2015 and beyond. One issue that is gaining traction is how hotels are dealing with the use of marijuana by employees, given its ever-changing legal status. The use of marijuana is now legal in 21 states and the District of Columbia for certain medical conditions. Two other states, Colorado and Washington, have legalized recreational marijuana use for individuals who are 21 years old or older, and Alaska and Oregon currently have similar legislation pending. Most state laws legalizing marijuana do not address the employment issues implicated by these statutes. Therefore, it is incumbent on all hotel operators to be aware of the laws in their states and to adjust their employment policies accordingly regarding marijuana use by their employees. Other issues that are currently looming large pertain to guest identity theft by hotel employees and the legal liabilities which ensue; issues of property surveillance versus a guest’s right to privacy; and immigration reform could also be a major compliance issue. The December issue of Hotel Business Review will examine some of the more critical issues involving hotel law and how some managers are addressing them in their operations.