Yesterday Harrah’s Entertainment reported record second-quarter revenues of $1.47 billion, up 41.5% from the same period in 2004. However, its stock prices fell as a 17% increase in earnings failed to meet Wall Street expectations. The results included just 17 days of contributions from Caesars Entertainment, acquired by Harrah’s on 13 June this year. The $9 billion acquisition added 18 US casino properties and 2 foreign ones to Harrah’s portfolio and brings to 43 the total number of its operations. The company intends to maintain the Caesars brand, which it sees as the world’s premier luxury gaming brand, and will use it for Harrah’s Integrated Resort proposal for Singapore.

In Louisiana Harrah’s now has four operations – Louisiana Downs, Lake Charles, New Orleans and Horseshoe Casino Bossier City. The company reports strong results in Louisiana and Mississippi including record performance for the Horseshoe Casino and the racino at Louisiana Downs, but admits that the Lake Charles riverboat revenue has been affected by the new Isle of Capri property opening this quarter. The tribal casinos in Oklahoma have also been attracting more players and, with their expansion plans and upgrades, the competition is expected to increase over the next year. Harrah’s is expecting to need strong marketing tools to keep ahead in the increasing gaming offering for players and forecasts a difficult year ahead.

Louisiana offers more diversity in gambling choices than any other state in the US. Commercial casinos, tribal casinos, racetrack casinos and electronic gaming devices are all legal. Harrah’s owns the one land-based casino, in New Orleans, but there are 15 riverboats and 3 racinos. In 2004 nearly 41 million people visited commercial casinos in the state and gross revenues rose to over $2.16 billion. Tax contributions to the Louisiana state and local governments rose 3.7% to nearly $437 million. (E-08.05.05)

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