Harrah’s Casino at Vicksburg’s City Front.(Melanie Duncan Thortis The Vicksburg Post)

[7/1/03]Following months of speculation, Harrah’s Entertainment Inc. of Las Vegas has announced it will sell its Vicksburg property to the Kentucky-based company that operates a casino in Greenville.

A news release says Harrah’s Vicksburg Hotel and Casino will be sold to Columbia Sussex Corporation of Fort Mitchell, Ken. The deal is expected to be completed by the end of the year and is subject to regulatory approvals. No financial information was disclosed, nor was a new name announced for the property here.

“We are very excited about this opportunity and are planning significant changes and upgrades to the property,” said Joe Yung, director of development for Columbia Sussex, in the release.

Harrah’s was the first casino-hotel combination built in Mississippi and was the second casino in Vicksburg when it opened at its City Front site in November 1993. The Isle of Capri had opened in August, Ameristar followed in February 1994 and Rainbow, in July.

Dockside gambling was authorized by Mississippi lawmakers in 1990 and approved by Warren County voters in December 1991 with promises of a financial windfall for the state and county.

Locally today, casino revenue from the four boats generates about $6.3 million in taxes to the city, which represents about 20 percent of the city’s total $30.9 million budget. In total, the casinos report about $200 million per year in income from wagers.

The downtown property adjacent to City Front is also leased by Harrah’s from the city. Mayor Laurence Leyens said the lease will transfer to the new owners after the deal is completed and that he expects to see good things from Columbia Sussex.

“If the deal goes through, then we’ve got a new investor in our downtown who is planning some major investments and improvements,” Leyens said.

Curt Follmer, senior vice president and general manager for Rainbow, said he sees the change in ownership as positive for the local market.

“These people are really good casino operators, not that Harrah’s isn’t, but they’ve basically ignored this property. It’s been a thorn in their side,” Follmer said.

Harrah’s has 117 hotel rooms and suites, about 700 slot machines and 15 table games, but is the smallest property in Harrah’s inventory.

In the beginning stages of local development, it appeared there would be a row of casinos extending immediately south of the Harrah’s site. As the market fleshed out, however, Harrah’s became the only downtown casino.

A Mississippi Gaming Commission for the first three months of 2003 said Harrah’s employed about 400 people at the Vicksburg hotel and casino. The casino has 42,500-square-feet of gaming area and an additional 186,545-square-feet of non-gaming space.

In a 2001 report, Harrah’s reported $1.3 million paid in local taxes and lease installments and $4.8 million in gaming and sales taxes. The same report said Harrah’s logged 775,000 customer visits in 2000.

“Columbia Sussex clearly recognizes the value the Harrah’s Vicksburg team brings to the acquisition and we look forward to continuing the customer-service tradition it has developed,” Yung said.

Columbia Sussex operates 57 hotels, resorts and casinos in 26 states and overseas, including the Lighthouse Point Casino in Greenville, the Horizon Casino Resort in South Lake Tahoe and the Westin Casuarina property on Grand Cayman Island. It also operates franchises for brands such as Crowne Plaza, Holiday Inn, Westin and Radisson. Earlier this year, the company purchased the Maxim in Las Vegas and is wrapping up a $40 million renovation of the 795-room hotel and casino, scheduled to open later this year as the Westin Casuarina, Las Vegas. Additionally, the company has contracted to purchase the River Palms Casino in Laughlin, Nev., and is awaiting regulatory approval for that transaction.

Libra Securities served as financial advisor to Columbia Sussex in the Harrah’s Vicksburg transaction.

Harrah’s Entertainment operates 26 casinos in the United States, primarily under the Harrah’s brand name.

Tim Wilmott, Harrah’s chief operating officer, said members of the Harrah’s customer-loyalty program will be able to earn and redeem credits through the transaction closing date. Customers with credits in their account balances after the closing date will be able to redeem credits at any Harrah’s, Harveys, Rio or Showboat casino as long as they visit within six months of their most recent trip.