Harrah's moving home office to LV

In a move that solidifies Las Vegas' position as gaming capital of the world, Harrah's Entertainment Inc. announced plans today to move its corporate headquarters here from Memphis, Tenn.

The company, which owns the Harrah's, Showboat and Rio casino brands, will move 50 senior executives and their staff to temporary digs by August, and will build a new headquarters near the Rio hotel-casino by the summer of 2000.

"This is a very good sign for Vegas," William Thompson, professor of public administration at UNLV, said. "The leading company in gaming should have its headquarters in Las Vegas."

Harrah's is already looking for temporary office space, said spokesman Ralph Berry. All key corporate executives will be in place by August 15. After the permanent facility is built, another 50 executives will likely move here, Berry said.

"But we're not sure exactly who that is or what that will be made up of," Berry said.

Nor has the exact location of the permanent headquarters been selected, said Berry. All the company knows is that it will be on the Rio "campus," bordering Twain Ave., he said.

The balance of Harrah's Memphis staff will remain in that city. Memphis will remain Harrah's support service center headquarters.

Harrah's officials said the company is making the move to get its executives closer to the pulse of the gaming industry.

"Las Vegas is unquestionably the epicenter of the casino industry," said Philip Satre, chairman and chief executive of Harrah's. "We are convinced that immersing our senior executives in the heart of the industry will improve our business and market knowledge base, enhance product and service innovation and fuel our corporate development."

But there is another important reason to be in Las Vegas.

"Establishing a headquarters in Las Vegas will also enhance Harrah's ability to attract and retain the highest quality senior executives in gaming industry roles, many of whom are naturally drawn to this market," said Satre. "We think it makes strategic sense to establish a corporate home in this important region."

Thompson said the move will benefit Las Vegas economically.

"Only in Las Vegas do you have headquarters and chief executives of gaming companies," said Thompson.

Other gaming cities have operational executives -- general managers, casino managers and perhaps a vice president of operations -- but the money paid senior executives flows from gaming properties in those cities to Las Vegas. Harrah's move solidifies that trend.

"This re-emphasizes that we are the place where gaming works, economically," said Thompson.

Thompson said the concentration of executive gaming talent in Las Vegas creates synergies one might not expect. In other words, senior gaming executives spend more time working together on common issues rather than plotting against one another for competitive advantage, he said. Adding senior executives from one of the largest gaming companies to the mix can only improve those synergies, strengthening the industry as a whole, said Thompson.

Harrah's and Park Place Entertainment -- the company recently created from Hilton and Grand Casinos gaming properties -- have long been locked in a debate over who is larger. Most industry observers agree that the two are the two largest gaming companies.

Both will be based in Las Vegas, along with gaming industry giants Mirage Resorts, Circus Circus Enterprises and MGM Grand.

Satre said the move will not disrupt casino operations.

"We do not believe this rather limited corporate relocation will have any disruptive effect," said Satre. "This announcement has no bearing whatsoever on the employees working at Harrah's casinos around the country."

The move is just the latest in a string of significant announcements for Harrah's. In 1998, the company completed its $1.2 billion acquisition of Showboat Inc., and its $888 million acquisition of the Rio hotel-casino. Harrah's owns 18 casinos nationwide, and one in Australia.

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