Harrah's Entertainment to Buy Binion's Horseshoe

On Jan. 11, 2004 , Harrah's Entertainment Inc. reached a tentative agreement to buy Binion's Horseshoe Hotel and Casino in Downtown Las Vegas, which had been closed down by federal marshals just three days earlier.

My guess is that the deal will go through, because it is a good deal for the buyer and seller as well as the employees, creditors, and indeed the entire gaming industry.

The price, which is in the $50 million range, should enable all of the creditors to be paid in full and leave a few million for Becky Binion Behnen.

I have heard for months now that many of Harrah's "suits" have been spending considerable time at the Horseshoe; however, they just couldn't make the numbers work because the physical plant is in such disarray and the debt is so high.

Harrah's probably will sell off the property while keeping both the Horseshoe name and the World Series of Poker . Although Harrah's has not historically been very keen on poker, the world has certainly changed in the last two years, thanks to Internet poker and the World Poker Tour .

The World Series will stay. "It's the largest sporting event in terms of prize money on the planet, it's got a great deal of tradition, and it draws customers and players from all over the world," Harrah's spokesman Gary Thompson said.

The question, then, is: Where will it be played? It is too early to speculate. I will try to have an answer in next month's newsletter.