Sunday, September 7, 2008
Harrah's Faces $2.8B Problem Over Casino
LAS VEGAS (AP) It garners a mere one-paragraph mention in the quarterly earnings report, but the private equity buyers of Harrah's Entertainment Inc. could have a colossal $2.8 billion problem on their hands. The world's largest casino company by revenue inherited a legal quagmire that dates back to 2000.

That's when Arthur Goldberg, then chief executive of Park Place Entertainment Corp., signed a deal with the St. Regis Mohawk Tribe to acquire the exclusive rights to jointly develop a casino in the Catskills in upstate New York, just a 90-minute drive from Manhattan.

The tribe's current leaders say the deal was a sham, only meant to protect profits at four casinos in Atlantic City, N.J., now owned by Park Place's successor company, Harrah's.

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