Lady Luck selling Bally’s interest

Saturday, Oct. 11, 1997 | 6:58 a.m.

Hilton Hotel Corp. is buying the interest for $15.25 million in cash.

Lady Luck, headquartered in Las Vegas, entered the joint venture with Bally's Olympia Ltd. Partnership in March 1995.

The sale is expected to be completed by the end of the year pending regulatory approval.

Lady Luck operates the only casino in Natchez and operates Biloxi and Coahoma County casinos and in Colorado, Iowa and Missouri.

In August, Horseshoe Gaming and Lady Luck Gaming announced a deal to put a casino and hotel in Vicksburg.

The announcement had been expected since the two gaming companies signed letters of intent earlier this month to develop Lady Luck's site just south of Interstate 20 next to the Mississippi River Bridge.

The $100 million project, to be developed and operated by Horseshoe, will include a casino, restaurants, an 800-car parking garage and 200-room hotel.

Ameristar, Harrah's, Isle of Capri and Rainbow already have casinos in Vicksburg.

Pasadena, Calif.-based Horseshoe has casinos in Tunica County and Bossier City, La.

In 1996, Hilton's acquired Bally Entertainment for $3 billion.

Hilton has been locked in a battle with ITT Corp. over Hilton's $11.5 billion hostile takeover bid. ITT shareholders will meet Nov. 12 in Las Vegas to discuss the issue after a judge in September blocked the company's plan to split into three separate companies in a move to thwart the Hilton bid.

ITT owns Caesars World resorts and the Sheraton chain including Sheraton Casino in Tunica.