Fight escalates over Louisiana casino

NEW ORLEANS -- Owners of the downtown New Orleans casino claim Harrah's Entertainment Inc. has stopped advertising the gambling hall to far-off tourists, escalating a dispute between the two.

JCC Holding Co. claimed, in a suit filed Thursday in state district court, that Las Vegas-based Harrah's violated its agreement to manage and market the casino, diverting potential customers to other casinos fully owned by Harrah's.

Harrah's called the lawsuit "ludicrous" and said JCC Holding's majority directors had voted three times against expanding in-casino restaurant service and adding a hotel -- features that Harrah's said are needed to compete in the industry.

JCC Holding owns Harrah's New Orleans Casino. Harrah's Entertainment owns 49 percent of JCC Holding and manages the casino through a subsidiary, Harrah's New Orleans Management Co.

The two companies already are in court against each other in Delaware over Harrah's Entertainment's attempt to elect a majority of the JCC Holding board. JCC Holding says that violates the terms of its 2001 bankruptcy reorganization.

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