Sep. 12, 2003 - Horseshoe Casino, which has some 2,700 employees and is seen as Tunica County's most profitable gaming operation, is being sold -- but apparently not changed in any significant way.

Las Vegas-based Harrah's Entertainment Inc. announced Thursday it is buying the privately owned, Illinois-based Horseshoe Gaming Holding Co., which has properties in Tunica County, Shreveport-Bossier City, La., and Hammond, Ind., for $917 million, which includes assumption of debt.

The sale, subject to federal regulatory clearance and approval of state gambling commissions, is expected to close in the first quarter of 2004.

"No, we do not plan to make any cuts at this time in the employment base at Tunica," said Harrah's spokesman David Strow. "We will need those employees to ensure that Horseshoe Tunica is as successful for us as it was for (owner) Jack Binion."

Horseshoe had net revenues of $248 million and operating income of $68 million for 2002.

The deal gives Harrah's a second Tunica County property, joining Harrah's Tunica Casino and Hotel. But company officials said Horseshoe would keep its name, its identity as a gambler's haven and likely its TV-and-billboard pitchman -- Binion.

"I think I can be reassuring (to employees) based on what Harrah's officials have said," said Bob McQueen, Horseshoe's Tunica general manager.

He said employees would learn more about the new ownership's plans when Harrah's president and CEO Gary Loveman and Binion visit the property the week of Sept. 22.

Jeff Wallace, senior research associate at the University of Memphis's Bureau of Business and Economic Research, said he expects Horseshoe's workforce -- the largest among the local casinos -- to remain intact, except at the top.

"If they intend on operating the Horseshoe brand separately from Harrah's," he said, "I would imagine they're still going to need the full complement of people that are already there."

But, "I would imagine at least some of the management people at Horseshoe would be looking for work."

McQueen said he'd like to remain in his GM position, but, "I haven't talked to anybody at Harrah's, so that would be kind of premature. Those kinds of things will be coming forward."

Loveman, in a teleconference to announce the sale, called Harrah's and Horseshoe "the two most-recognized and important brands for experienced gamblers."

Binion said it was "a great fit," because Harrah's also emphasizes "the gambling experience."

Some Tunica County casinos put their marketing emphasis on shows, food or giveaways.

"It's important to me that it's in the right hands," said Binion, adding that he welcomes a continued role in Horseshoe marketing.

Wallace said the acquisition is smart business for Harrah's.

"They just instantly increase their market share in doing this. ... They're buying a very respected brand."

When the sale is finalized, Harrah's will become the second company with multiple properties in the nine-casino Tunica County market. Park Place Entertainment owns Sheraton, Bally's and the Grand.

According to the Mississippi Gaming Commission, Horseshoe had 2,676 employees as of June 30, a number that McQueen said has increased to about 2,700. Harrah's had 813 employees, eighth among the nine properties.

With the sale, though, competition will give way to collaboration.

"In instances where we have two properties in one market, we've worked very hard to have them collaborate," Loveman said. "We will certainly look to that in Tunica, although the Horseshoe business is much bigger than the other one we operate there."

Loveman said the company would sell its Harrah's casino in Shreveport to avoid "overexposure" in the market. The company said it doesn't plan any other sales related to the Horseshoe deal.

-----To see more of The Commercial Appeal, or to subscribe to the newspaper, go to http://www.gomemphis.com

(c) 2003, The Commercial Appeal, Memphis, Tenn. Distributed by Knight Ridder/Tribune Business News. HET, PPE, BGII, GND,