Harrah’s Casino Sale Approved by the State of Nevada

In April 2007, the Harrah casino shareholders approved the sale of the casino but it would not be finalized until the state regulatory boards approved the deal. Last week the state of Nevada approved the deal where Harrah's Entertainment will be taken over by Apollo Management and TPG Capital which are private-equity firms.

Most states in the United States and the European Union had approved the sale and Nevada was one of the last to approve because they hold the majority of Harrah's dealings. The company is still waiting to hear from the National Indian Gambling Commission and it is expected to happen around the end of the month. The Nevada Gaming Control Board made a recommendation earlier this month at a hearing and so the Nevada Gaming Commission ruled a unanimous vote on the sale.

Many issues were discussed during the Commission's decision process. They wanted to be sure that the private firm would continue to honor their commitment to Harrah's $2.1 billion expansion plan in Nevada. The executives of both TPG and Apollo both stated they are looking for long-term involvement with the company. "We're not cut-and-run guys." They said.

Gary Loveman, Chairman, president and CEO of Harrah's Entertainment had this to say on the approval: "We are grateful to the Nevada Gaming Commission and their counterparts at the Nevada Gaming Control Board, as well as all of the other regulators that approved this extraordinary transaction, moving forward as a private company after the closing of the transaction, we will continue to deliver superior customer service, further our development in international markets and strengthen our competitive position in each of the markets where we operate."