On the agenda at today’s meeting of the Louisiana Gaming Control Board (LGCB) is: Consideration of Joint Petition by Harrah’s Entertainment, Inc. & Pinnacle Entertainment, Inc. for Transfer of Ownership Interest in Licensees, Harrah’s Lake Charles, LLC and Harrah’s Star Partnership. The agreement of sale reached between Harrah’s and Pinnacle for the hurricane damaged casino at Lake Charles is not without its critics, some of whom have written in protest to the Board.

The major point of contention in the deal is a penalty clause that would award US$100 million if the licence is used within five years to open a new casino in either metropolitan New Orleans or Shreveport-Bossier. A federal lawsuit has already been filed against Harrah’s and Pinnacle claiming their agreement is unfair and illegal as it allows for a monopoly. A letter has been sent to the LGCB asking that the US$100 million penalty be removed from the sale agreement.

It is thought that if the sale agreement goes ahead as it presently stands then it virtually protects both companies from competition. This would be detrimental to development plans that could boost local economies. Many would like to see a riverboat casino brought back to the New Orleans lakefront. Harrah’s operates the only land-based casino in Louisiana, in New Orleans. State Senator Ann Duplessis is to ask the LGCB to postpone discussion of the sale agreement until next month’s session. (E-08.15.06)

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