Iowa regulators OK Harrah’s casino deals

Friday, June 22, 2001 | 11:05 a.m.

DES MOINES, Iowa -- The state's gambling regulators on Thursday approved the purchase of Harveys Casino properties in Council Bluffs by Harrah's Entertainment Inc. of Las Vegas.

The Iowa Racing and Gaming Commission approved the purchase of Harveys Casino Resorts and Bluffs Run, contingent on approval by the Federal Trade commission and the Iowa Division of Criminal Investigation.

Harrah's Entertainment Inc. announced in April that it had agreed to acquire Harveys Casino Resorts of Lake Tahoe from Colony Capital Investors III, L.P., for $625 million, including Harveys' debt. Harrah's hopes to take control of the Iowa casinos and those in Colorado and Nevada by the end of July, though antitrust issues may hinder the deal in Nevada's Lake Tahoe market.

"Harrah's has a good reputation, and, being a gaming company, they will almost certainly reinvest in this property," Racing and Gaming Commission member Rita Sealock said at that time. "Harrah's should bring fresh, new ideas here and make what we have better. I can't see any negative factor in the community."

"The two Harveys facilities in Council Bluffs have a combined database of more than 600,000 customers, virtually all of whom will be new to Harrah's," Phil Satre, Harrah's entertainment chairman and CEO, said in April.