Gaming merger approved in La.; Ill. up next

THE ASSOCIATED PRESS

BATON ROUGE, La. -- State gambling regulators Tuesday approved the proposed $425 million buyout by Harrah's Entertainment Inc. of Players International Inc., leaving approval by Illinois casino regulators as Harrah's only major hurdle.

The action by the Louisiana Gaming Control Board moves Harrah's closer to its plan to absorb Players and its two riverboat casinos in Lake Charles.

Harrah's officials are pushing for the Illinois Gaming Board to approve the deal at its Feb. 22 meeting, but the board has not said whether it will be on the agenda. The regulators are concerned about a lawsuit that threatens to invalidate recent changes to state gambling law, including a provision making it legal for companies to own more than one casino.

Harrah's already owns a casino south of Chicago, and would acquire the Metropolis riverboat in southern Illinois as part of the Players purchase, becoming the state's first dual operator.

Federal prosecutors claim that Players executives funneled money to former Louisiana Gov. Edwin Edwards and his son, Stephen, through consultant Ricky Shetler, to get a license and protection during Edwards' last term, 1992-1996. The Edwardses have pleaded innocent to federal charges. The trial in the case began last month and is expected to continue for several more weeks.

Neither Players nor its current executives were indicted in the Edwards case, but Louisiana regulators were questioning whether the company should have its two licenses for the Lake Charles operation revoked.

Players agreed late last year to get out of the gambling business in Louisiana and pay the state a $10.2 million penalty.

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