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Harrah's Entertainment By Daniel Remin H arrahs Entertainment Company, one of the leading casino companies in the United States, currently has over one million square feet of casino property and operates in more markets than any of its competitors. Recent acquisitions and mergers have added to Harrahs success, enabling the company to show increased revenue in 1998 and in the first two quarters of 1999.On January 1, 1999, Harrahs merged with Rio Hotel and Casino Inc. located in Las Vegas, Nevada. Rio owns a hotel-casino, a neighboring championship golf course, and has the rights to thirty-five acres of undeveloped land. However, as part of the merger, Harrahs assumed Rios outstanding debt. Harrahs was already well established in the Las Vegas area and has hotels and casinos in Atlantic City, but this new merger offered a different type of place for its customers. Unlike a hotel on the Las Vegas strip, Rio is more of a resort, and with this move Harrahs has increased its number of clients and will bring in even more revenue. Harrahs use of technology has made it the leading casino and hotel network in the United States. Winners Information Network, or EiNet, is a database with all of Harrahs customers that allows those people to tell the company where they like to play as well as what they like to play, which helps Harrahs make promotional decisions. Total Gold is Harrahs player recognition and rewards system, which allows players to gain points playing the slot machine and then redeem their points in the form of cash, food, or even lodging. Running a business such as this one is not easy. Gambling is against many Americans ethical beliefs, and there are some people who will not invest in Harrahs stock for that reason. Harrahs, however, is very respected in its community and has participated in the "Responsible Gaming Awareness Week." Its "Project 21" effort discourages minors from gambling, and its employees have done over 900,000 hours of volunteer work. Harrahs also contributed $1.4 million to the United Way charity fund. In 1998, Harrahs overall revenue was over $2 billion up from $1.6 billion in 1997. Harrahs was named "Company of the Year," by Casino Executive Magazine, and CEO Philip G. Satre was named "Executive of the Year," by Casino Journal. In addition to the great year Harrahs experienced a very strong second quarter in 1999. Its gaming revenue jumped 15% and it had a 50% rise in market growth. Harrahs has plans to open a new casino in New Orleans later this year. It also recently invested in an airline that will travel mainly from New York and Los Angeles to Las Vegas. The stock could really rise in the coming months if the their success continues. Harrahs should benefit from its recent acquisitions and expansions. Look for a strong finish from it in 1999. |