Harrah’s, Argosy buyouts close

Wednesday, Aug. 1, 2001 | 10:38 a.m.

Harrah's Entertainment Inc. of Las Vegas announced Tuesday it has closed on its $675 million acquisition of Harveys Casino Resorts.

Las Vegas-based Harrah's acquired the Lake Tahoe casino company from an affiliate of Colony Capital of Los Angeles. The buyout adds four casinos to the Harrah's chain -- Harveys Resort & Casino of Lake Tahoe; Harveys Casino Hotel and Bluffs Run Casino, both in Council Bluffs, Iowa; and Harveys Wagon Wheel hotel-casino in Central City, Colo. Council Bluffs is located across the Missouri River from Omaha, Neb.; Central City is about 30 miles west of Denver.

With its acquisition of Harveys Lake Tahoe, Harrah's properties now account for about 70 percent of the gaming profits produced by Lake Tahoe casinos. Harrah's now operates 25 casinos nationwide.

Separately, Argosy Gaming Co. of Alton, Ill., announced it has closed on the $465 million purchase of the Empress Casino and Hotel in Joliet, Ill.

The riverboat was acquired from Jack Binion's Horseshoe Gaming Holding Corp., which bought the Empress casinos in Joliet and Hammond, Ind., in 1999 for $629 million. Binion was found unsuitable to hold a gaming license by the Illinois Gaming Board, which cited questionable business practices by Binion in Nevada, Louisiana and Indiana. Binion agreed in January to sell the Joliet casino.

Argosy now controls six riverboat casinos in the midwest, located in the markets of Chicago, St. Louis, Kansas City, Mo., Cincinnati, Baton Rouge, La., and Sioux City, Iowa.